A recent paper from the International Monetary Fund (IMF) examines the cost of state subsidies in Libya, and urges gradual reform to the system.

Capital spending last year by the government was less than a quarter of 2010 levels, according to new figures, while soaring administrative and subsidies costs suggest future shortfalls in budgets.

Schemes covering healthcare, vocational training and support in the justice and security sectors are in progress, an EU spokesman told The Libya Report.

The Bengazi Economic Council, a new advisory body, was formally established on 11 May, state news agency LANA reports.

The Minister of Economy, Mustafa Abu Fanas, has said that a scheme to remove subsidies is being "finalised" and new monthly payments will be rolled out during Ramadan.

During a visit to Tripoli, the UK Minister for International Development has pledged £2.5m (LD5m) to support small and medium-sized private companies.

Libya's Minister of Economy says he expects growth of 3% this year, a far more modest rate of increase than projected by the IMF.

The two governments have agreed to look at four major cooperation projects, including a refinery in eastern Tunisia, the supply of Libyan crude oil, and gas exploration in border areas.

The Integrity Commission has disbarred the head of the Libyan and Investment Development Company (LIDCO), as well as other other officials from the banking and media sectors.

The two governments have agreed to set up a joint body to develop bilteral trade relations.

A senior official from the World Bank is in Libya to discuss assistance programmes to be run with the government.

A delegation from the African Development Bank has visited the Libyan Export Promotion Centre (LEPC) to discuss renewing a support agreement that was originally signed in 2010.

Managers from the General Authority for Privatisation and Investment Promotion, as well as local officials, have discussed ways of promoting business and investment in the southern Libya city.

Mustafa Abu Fanas held meetings in Benghazi last week to discuss the ministry's plans and the improvement of the business environment.

The International Monetary Fund now says it expects Libya's real GDP to rise by more than 20% in 2013.