Germany is to lend up to 100 million euros (144 million dollars) to Libya's opposition Transitional National Council (TNC), Foreign Minister Guido Westerwelle announced Sunday.
“We have decided to make urgently needed funds for civil and humanitarian measures available to the Libyan transitional council,” Westerwelle said in a statement.
Westerwelle said there was no money to build necessary structures, or meet shortages ranging from food to medical supplies, during the ongoing civil conflict.
NATO again bombed leader Moamer Gaddafi's compound on Saturday night.
“At the same time, due to international sanctions, Gaddafi's frozen billions (of assets) are also in Germany,” Westerwelle said.
“These means belong to the Libyan people, but cannot be used at present. To change this, we are now giving the Transitional National Council 100 million euros in credit,” he added.
The TNC had guaranteed to repay the money once the United Nations Security Council had released the frozen accounts of the Gaddafi regime to be used by the country's next legitimate government, Westerwelle said.
The loan follows Westerwelle's discussions with the TNC in London, Rome, Berlin and the rebel-held Libyan city of Benghazi.
The funds are also aimed at strengthening the TNC, which is in the process of reinstating regular state structures within the growing area under its control, the foreign ministry statement added.
In March, Germany abstained in a UN Security Council vote authorising a military operation to protect Libyan civilians, and is not participating in the NATO-led mission.
Germany, which holds a two-year seat on the Security Council, had argued in favour of releasing frozen Gaddafi funds for use by the TNC, but the proposal was blocked by Russia and China.
Berlin has provided 15 million euros in humanitarian aid since the start of the conflict. - Sapa-dpa