Foreign Secretary William Hague has announced that the United Nations is to unfreeze 1.86 billion Libyan Dinar, around £1 billion sterling, currently held in the UK.
The move will provide much needed support for the National Transitional Council (NTC), who need the money to provide humanitarian aid, maintain the country’s existing infrastructure and to sure up the flagging Libyan economy.
The banknotes were printed by British currency printer De La Rue and held in the UK following the freezing of assets as part of the sanctions imposed on the Gaddafi regime.
Following agreement from the UN Sanctions Committee to release the money, William Hague said:
"I very much welcome the unanimous agreement of the UN Sanctions Committee to the UK's proposal to release over 200 million banknotes with a face value of Libyan Dinar 1.86bn to the Central Bank of Libya. This represents another major step forward in getting necessary assistance to the Libyan people, building on the remarkable progress in recent days.
"These banknotes, which were frozen in the UK under UN sanctions, will help address urgent humanitarian needs, instill confidence in the banking sector, pay salaries of key public sector workers and free up liquidity in the economy."
A request from the NTC to the US Government to unfreeze assets has similarly been approved by Washington.
Libya is thought to have around $100 billion in frozen state assets around the world.