Libya: $1.5bn Of Assets Released For Aid

Libya: $1.5bn Of Assets Released For Aid

The United Nations Security Council has agreed to release $1.5bn (£1bn) of seized Libyan assets for humanitarian needs.

The US and South Africa struck a deal after the rebel-led Transitional National Council (NTC) said it urgently needs at least $5bn (£3bn) to pay state salaries, maintain vital services and repair critical oil facilities.

South Africa was originally opposed to unfreezing the cash saying it implied recognition of the NTC but it is understood it backed down after pressure from the US.

The funds are frozen in US banks and US diplomats tabled the draft resolution on Wednesday.

Libyan Sanctions Committee

Neither South Africa nor the African Union has recognized the NTC, and South African diplomats had insisted that sending money to the rebel government implied international recognition.

The agreement meant the resolution did not have to go to a full council vote and was immediately approved by the Libyan sanctions committee.

US ambassador Susan Rice said in a statement: "Today's action demonstrates the international community's solidarity with the brave people of Libya at this historic moment."

Diplomats said the NTC would be involved in deciding how to use the money and the US said it was not to be used for military purposes.

Analysts estimate that as much as $110bn (£67.5bn) is frozen in banks worldwide.

Earlier Italian Prime Minister Silvio Berlusconi announced that Italy plans to release 350 million euros (£309m) in Libyan assets.

"destroy"

Head of the NTC Mahmoud Jibril has warned that stability and security are at risk if rebel salaries, unpaid for four months, are not delivered.

Among the other urgent priorities are collecting weapons, rebuilding a justice system and national army, providing care to the wounded in Libya and abroad, and rebuilding power stations.

Leaders of the NTC have announced they will move immediately from the eastern rebel centre of Benghazi to Tripoli to take over from the collapsed Gaddafi regime.

Rebels have been involved in fierce fighting since they stormed into Tripoli on Sunday night and took over Colonel Muammar Gaddafi's compound on Tuesday.

The whereabouts of the dictator is still unknown but a house-to-house search is under way in the capital to find him.

Earlier the Al Orouba TV channel broadcast an audio tape purporting to be of Col Gaddafi telling his supporters to "destroy" the rebels

Skynews/Iheanacho