Western powers say Libya risks bankruptcy as oil price falls

Rome: The United States and five of its European allies on Saturday warned that Libya could face bankruptcy if oil prices continue to fall.

In a statement voicing alarm at the deteriorating security situation in the North African state, the allies warned: "In light of low oil production and prices, Libya faces a budget deficit that has the potential to consume all of its financial assets if the situation does not stabilize."

The statement was issued by Britain, France, Germany, Italy, Spain and the United States.