Tripoli, Libya (AHN) – Despite the freezing of Libyan assets by at least three western nations, the strife-torn nation has enough in its war chest to fund operations. According to the International Monetary Fund, the Central Bank of Libya holds at least $110 billion in foreign reserves.
The IMF cautioned it is unclear how much money is held by the central bank and on foreign shores. The Libyan government and strongman Muammar Gaddafi have extensive global holdings ranging from a Hollywood production company to an Italian soccer team and London property.
The U.S. has frozen $30 billion in Libyan assets, Canada $2.3 billion and the U. another $30 billion in a global bid to pressure Gaddafi to step down after 42 years of ruling Libya with an iron fist.
Despite the freeze, the IMF estimates Libya’s $110 billion international reserves are sufficient to cover the country’s imports for three years.
Because of the ongoing civil unrest in Libya, oil production dropped between 800,000 to 1.2 million barrels daily over the past two weeks to just 120,000 barrels a day, further crimping the flow of dollars to Libya. According to ENI, the Italian oil company that produces about one-third of Libya’s petroleum, the 120,000 barrels produced daily is not sold but stored.
The ongoing political strife in Libya is expected to last longer following Gaddafi’s pronouncement that he would fight the rebellion to the last man and woman. To show he meant business, the dictator launched a major ground and air assault on eastern Libya, which is held by the opposition.
The towns of Brega and Ajdabiya were the targets of fighter jet air strikes, even as Libyan ground forces battled rebels with heavy artillery fire. The air and ground attacks prompted the rebel leaders in Benghazi to appeal for international military intervention.
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