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| Africa North | ||
| Rebels short on cash | ||
| 2011-04-06 | ||
| Rebel-held eastern Libya is at risk of running out of currency within weeks, the head of the opposition's central bank has warned. Banks were short of local and foreign currency, said Ahmed el-Sharif, adding the asset freeze imposed on the Muammer Gaddafi regime was hurting its foes as well. Power was being rationed in Benghazi, where many shops and businesses have been closed for almost two months. A fuel and cooking gas shortage was averted only with the arrival of supplies from Qatar. "We are in a cash economy; all the cash is with the public," Mr Sharif said. "The banks will be empty in maybe two weeks." The opposition has paid public sector salaries in areas it controls for February and March but will struggle to meet April's wage bill unless it can gain access to Libyan assets frozen offshore, he said. The monthly salaries for public sector workers in the east -- 80-85 per cent of the region's labour market -- is estimated at 250m dinars ($204m), he said.
The rebels say the Benghazi branch of the central bank was being separated from Tripoli and could operate as the legitimate authority if it were no longer subject to the asset freezes. Billions of dollars in Libyan assets have been frozen. The US Treasury Department said in February that $30bn in Libyan government assets had been blocked, while the UK said in March it had frozen a further $19bn. In an effort to raise funds as the impact of the seven-week uprising becomes more severe, the opposition is hoping to export oil. A tanker chartered by Vitol, the world's largest oil trader, docked near the eastern city of Tubruq on Tuesday to take on about 1m barrels. The company, based in Geneva, declined to identify its client or say where the oil would end up. At current prices, the cargo is worth almost $126m. Mr Sharif said he would advise the cessation of oil exports if the freeze continued to apply to the opposition. "You permitted Libya to sell oil. For what purpose? Just keep the price of oil down?" he said. "This is also a war against the Libyan people. "If the west wants to protect Libyans they should protect them through every arena, economic, political and military," he added.
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| Posted by:Steve White |
| #2 Rebels short on cash? So am I and I ain't got no oil. |
| Posted by: AlanC 2011-04-06 11:27 |
| #1 The oil shipment by the rebels should help their cash shortage. |
| Posted by: JohnQC 2011-04-06 10:26 |