IMF recognises Libya's fledgling administration: Lagarde

10th September 2011, Comments 0 comments

The International Monetary Fund said Saturday it now recognises the transitional government in Libya, paving the way for the fledgling administration to benefit from the IMF's financial help.

"Libya is now formally represented at the IMF by the National Transitional Council," IMF chief Christine Lagarde told reporters at a G8 finance ministers' meeting in Marseille.

She said her organisation's internal procedures required a certain number of countries to recognise a government before it could become a member.

More than 60 countries around the globe now recognise the Western-backed NTC as the legitimate representative of the Libyan people.

The NTC, which last Thursday represented Libya at an international summit in Paris, was set up in the eastern city of Benghazi on February 27.

It was created by leaders of the insurrection that had just broken out in Benghazi, which quickly emerged as the rebels' main stronghold in their battle against the regime of Moamer Kadhafi.

Currently led by Mustafa Abdel Jalil and comprising some 40 members, the NTC on August 25 announced it was transferring its government from Benghazi to Tripoli, two days after taking over Kadhafi's compound in the Libyan capital.

"The fund stands ready to help the authorities through technical assistance, policy advice, and financial support if requested, as they begin to rebuild Libya's economy," Lagarde said.

"The immediate priorities will be to address humanitarian needs and ensure security," she added.

"The new authorities will also need to quickly restore oil production to generate revenues, stabilise the currency, re-establish a payment system, introduce sound public financial management, and start reforms to foster a more inclusive and sustainable growth for the benefit of all Libyan citizens."

IMF staff are ready to travel to Libya for an initial fact finding mission as soon as conditions allow and to support the new authorities in any way they deem appropriate to help the country's economy recover quickly and be on a stronger and more sustainable footing, Lagarde said.

© 2011 AFP

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