UN Security Council to lift Libya's fund sanctions once unity government is installed

Libya's sovereign wealth fund sanctions will be given considerations by the U.N Security Council. This move will only be possible if a unity government will be formed to take control of the funds as well as Libya's Central Bank and the National Oil Corporation.

In 2011, the U.N council froze the assets of the Libyan Investment Authority after the fall of is former leader Muammar Gaddafi in order for the funds to be safe, but this action has led the country to a deeper disarray as per Reuters.

As reported by the ABC News, Ibrahim Dabbashi, Libya's U.N Ambassador, was surprised due to government inaction regarding the request for an exemption from U.N sanctions for the LIA so that it will be able to manage the frozen assets while it is still under the control of the U.N. The LIA's total assets were valued at around $67 billion by the end of December 2012.

The U.N council is waiting for the confirmation that the unity government will take its role in overseeing the LIA, National Oil Corporation, and the Central bank of Libya before it gives the renewed sanctions that the council has voted. The council wanted the continuous function of these institutions for the benefit of the Libyan people.

During the fall of Gaddafi's leadership, there has been a power vacuum between two competing governments who have been claiming control over the oil-producing country. This has allowed the Islamic State militants to take over the North African state.

As reported by BBC, the western powers only recognize the new unity government to be Libya's legitimate government though it faces opposition from the east and west part of the country. The U.N Security Council has shown its utmost willingness to support the unity government.

Hassan Bouhadi who was appointed as the head of the fund in 2014 is the only international leader that the U.N recognizes according to Ambassador Dabbashi.

Tags

Libya, Libya's wealth fund, Libya's wealth fund sanctions, U.N. U.N Security Council, National Oil Corporation, Libya's Central Bank, Ibrahim Dabbashi, Hassan Bouhadi

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