Central bank governor flees Tripoli

London: The governor of Libya's central bank fled to Turkey on Wednesday night after promising to support international efforts to secure Colonel Muammar Gaddafi's assets. The European Union froze central bank funds and other Libyan holdings at a meeting on Tuesday.

Hours later, Farhat Bengdara, who has roots in the rebel-held town of Benghazi, claimed he was ready to deal with international organisations working to impose sanctions on Colonel Gaddafi's regime.

William Hague, the British Foreign Secretary, has proposed diverting official Libyan funds to the opposition, a move that would starve Colonel Gaddafi of resources and help to sustain the rebel National Libyan Council. 

Collapse of oil

Bengdara said he had already been in touch with international financial agencies to ensure that money held overseas could be used to support a population affected by the collapse of oil exports.

If his credentials remain intact, Bengdara would have the power to transfer Libyan funds between accounts.

"I took the decision to travel to Istanbul to contact the European Union, International Monetary Fund, World Bank and US Treasury and to try to do my best to stop the sanctions that would freeze the central bank's money," he said.

Bengdara said he had not resigned from the bank and described the order installing Abdul Hafid Zlitni, Libya's secretary for planning and finance, as his replacement as an illegal step. He hinted that he could assist efforts to ensure that sanctions hurt only the regime's leaders.

"We are trying our best to make the case that any sanctions should not affect the Libyan population, should not make it difficult for people to import food," he said.

Diplomats said the EU's 27 countries had agreed to impose sanctions on the $70 billion (Dh257.07 billion) Libyan Investment Authority (LIA), the central bank, three other financial organisations and one individual, a former Libyan finance official.

The list already covers 26 Libyans including Colonel Gaddafi and his family. The details of the restrictions are expected to be published in the EU Official Journal, the record of all EU legislation today.

The Gaddafi regime has transferred tens of billions overseas to buy property and hold financial assets.

The LIA's offices in London near Park Lane were deserted on Wednesday, but a pre-Gaddafi national flag used by the opposition was hanging from a balcony. Bengdara flew to the Gulf a few days after the protests erupted, saying it was impossible to conduct bank business from Tripoli.