Deal struck to release $1.5bn funds

THE United States and South Africa struck a deal yesterday to allow the release of $1.5 billion (€1bn) in frozen Libya funds for humanitarian aid and other civilian needs, UN diplomats said.

UN Security Council diplomats said the agreement would enable the funds to be released without a vote by the council on a US draft resolution that Washington submitted on Wednesday in response to South Africa blocking a US request to disburse the money in the UN Libya sanctions committee.

The South African delegation said it did not support funds going directly to the Libyan rebel government, the Transitional National Council (TNC), which the African Union has not recognised. Pretoria insisted that there be no mention to the TNC in the official request for the release of the funds.