Government can now unlock tens of billions of dollars of assets held abroad
The UN security council has lifted sanctions on Libya's central bank and its foreign investment bank, to ease the country's cash crisis.
The removal of restrictions from the Central Bank of Libya and its investments subsidiary the Libya Arab Foreign Bank on Friday enables the new government to unlock tens of billions of dollars of assets held abroad.
The US and the UK followed suit shortly afterwards, bringing the total amount of assets unfrozen to about $80bn (£51bn).
The foreign assets of five Libyan banks were frozen earlier this year as part of sanctions against Muammar Gaddafi.
British foreign secretary William Hague described the move as "another significant moment" in the country's transition.
"It means that Libya's government will now have full access to the significant funds needed to help rebuild the country, to underpin stability and to ensure that Libyans can make the transactions that are essential to everyday life." he said.
He added that Britain would now free £6.5bn held in Britain.
Following the UN decision, the US treasury said it would "allow for the release of more than $30bn in blocked central bank and LAFB [Libyan Arab Foreign Bank] assets".
It added: "The Libyan government now has the ability and responsibility to manage these funds."
The US defence secretary, Leon Panetta, arrived in Tripoli on Saturday to meet members of the interim government, becoming the first Pentagon chief to set foot on Libyan soil.
The interim government has been calling for the release of around $150bn held oversees to pay employee salaries and keep the country's essential services running.