Libyan rebels in loan talks

Benghazi, 03 May – (ANA) - Rebels controlling Libya's east are in talks for loans from the United Arab Emirates and Qatar, a spokesman said, as they scramble to avoid running out of funds.

The Benghazi-based rebel interim national council has scraped together enough cash to pay salaries for public workers in April but will struggle, as the conflict drags on, to meet May expenses without a fresh injection of funds, spokesman Abdel Hafiz Ghoga said.

"Without the use of the frozen assets or at least loans that will have frozen assets as collateral, our finanical situation will be quite critical," Ghoga told reporters.

"February and March we had no problems, April I think we just about managed it, but if we don't get any financing for May we will be in difficulty."

Concern over how long the rebels can keep up operations and maintain basic services in the east have grown as the war hits a military stalemate, with fighting stalled on the eastern frontline and continued bombardment by Gaddafi forces on besieged towns in the west.

With oil output halted after attacks on eastern oilfields, the rebels have pinned their hopes on being able to tap Libyan assets frozen abroad after Muammar Gaddafi's brutal crackdown on protesters who rose up in February against his four-decade rule. (ANA)

FA/ANA/03 May 2011--------