Governments around the world are holding up billions of dollars in assets ordered released to help the Libyan government which faces a growing cash crunch, diplomats said Wednesday. The UN Security Council has authorised the release of more than $18 billion in assets since easing sanctions in September, but barely $3 billion has reached the interim government, diplomats said.
The Security Council is now looking to find ways to pressure government treasuries to overcome bureaucratic obstacles and free the money. The UN Security Council froze assets belonging to state companies and the central bank when it ordered sanctions against Muammar Qadhafi in February and March.
The billions were originally released for humanitarian purposes as Qadhafi's battle with the opposition intensified but are not now needed for that reason and so new authorisations have had to be sought. Libya's interim government needs cash to pay for salaries and to keep public services running, officials said. Ian Martin, the UN special envoy to Libya, told the Security Council on Monday that the country has "an urgent need for liquid funds."
"The stabilisation of the country, the success of the government and the perception of the international community are all at stake," Martin said. Libya's oil production is barely one third of the figure before the uprising against Qadhafi started in January and this has badly hit the revenues of the interim government.
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