- Title: LIBYA: Misrata bank pays cash-strapped government workers
- Date: 6th July 2011
- Summary: MISRATA, LIBYA (JULY 4, 2011) (REUTERS) PEOPLE WAITING ON THE STREET OUTSIDE BANK POLICEMAN ON STEPS OF BANK CALLING OUT NAMES PEOPLE WAITING INSIDE BANK
- Embargoed: 21st July 2011 13:00
- Keywords:
- Location: Libya
- Country: Libya
- Topics: War / Fighting,Economy
- Reuters ID: LVA36XPTPY8GG1P77GRYGCL4HC43
- Story Text: Residents in the rebel-held Libyan city of Misrata queued up to make cash withdrawals after banks reopened on Monday (July 4).
The banks closed soon after the February 17 uprising began and the subsequent besieging of the western city kept people indoors and businesses shut.
"I took out some money, I took out some money from the bank because banks have been closed for a while and we ran out of cash, there is a shortage of money in the country," said bank customer, Najje Muftah.
Many public employees, including police, have returned to work unpaid after an appeal from the rebel Libyan NTV (National Transitional Council) last month.
Just weeks since it was the scene of some of the bloodiest battles of the Libyan war so far, Misrata is dragging itself to its feet thanks to a volunteer workforce and a deep sense of pride in what was once an affluent trading hub.
Most public utilities are functioning thanks to employees working without pay, and concerned parents have reopened a number of schools on at least a part-time basis to keep their children occupied.
Rebel council leaders describe it as the minimum level of service that could be expected given the fight that continues to rage between forces loyal to Muammar Gaddafi and rebels trying to end his 41-year rule, on three fronts some 20-30 kilometres (12-20 miles) from Misrata.
But officials say they will need money soon. Libyan assets are frozen and there is no money to pay salaries. Thousands of government workers have not been paid since the rebellion began and ordinary Libyan families are struggling.
The country's cash-strapped rebels have called on foreign donors to back new loans using the blocked cash as collateral. In the meantime, the rebel military council and the banks have come up with a short-term solution aimed at providing immediate relief for impoverished local government workers.
Misrata's biggest bank, National Commercial, is giving every account held by a government employee the equivalent of $250 U.S. dollars. The sum represents a fraction of what they are owed but the move has been welcomed by beneficiaries, like Ahmed Mohammed.
"I have small amount of money in my account, but even for those who have nothing in their accounts, the bank is helping everybody out, they are giving every account a certain amount of money to help people meet their day-to-day needs," he said.
National Commercial branch head, Ali Basheer, said all banks in Misrata were now cooperating with each other to make the scheme work.
"All the various banks in Misrata are now acting as one bank, we are offering services to residents as one bank, not as the Commercial, Jamahiriyyah, Wihda or Sahari banks. The money we have, and the residents' deposits, are what we are giving people."
The Chair of Misrata's rebel council has called on the West to release to the rebels billions of dollars held abroad by Gaddafi's regime in now-frozen bank accounts, "so we can pay these people."
Western powers say international sanctions are narrowing the options for Gaddafi by blocking oil exports, leaving Libya without its principal source of revenue. His foreign currency reserves will eventually run out, they say.
In a sign cash is growing tighter, Libya's central bank announced on its website that from now on commercial banks would need its prior approval for all operations involving foreign currency. - Copyright Holder: REUTERS
- Copyright Notice: (c) Copyright Thomson Reuters 2011. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None
