Global Arab Network | Libya hopes lifting of sanctions will ease post-Gathafi cash crunch

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Libya hopes lifting of sanctions will ease post-Gathafi cash crunch

Global Arab Network - - Asif Khalifa

Sunday, 18 December 2011 19:58

Global Arab Network - The governor of Libya's central bank said he expected the lifting of US and UN sanctions imposed during the rule of slain leader Moamer Gathafi to ease the country's liquidity crisis.

Al-Seddiq Omar al-Kabir was speaking after the UN Security Council on Friday lifted sanctions on his country's central bank and a key investment bank, freeing tens of billions of dollars to ease a post-Gathafi cash crunch.

The United States immediately announced it would unblock more than $30 billion dollars of assets of the Central Bank of Libya and its subsidiary, the Libyan Foreign Bank (LFB). Britain said it would release more than $10 billion.

Kabir said he was satisfied that these decisions were "necessary for economic stability in Libya and the re-establishment of confidence in its banking sector."

He said they would "facilitate local and international banking transactions and consolidate social and macroeconomic stability in the new Libya."

An estimated $150 billion of assets were frozen around the world in February after the Security Council ordered sanctions against Gathafi, who was overthrown at the end of an uprising in which tens of thousands died.

Kabir said unblocking the frozen funds did not mean the money would be "transferred directly to Libyan banks."

"The transitional government is currently preparing next year's budgets. If they are adopted, the central bank will justify the use of the funds," he said.

The governor added that letters had been sent to the diplomatic missions in Tripoli of the countries concerned, with the aim of speeding up the unblocking procedure. (AFP)

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