The UN Security Council lifted sanctions on Libya's central bank and a key investment bank freeing tens of billions of dollars to ease a post-Gaddafi cash crunch.

According to AFP, the United States immediately announced it would unblock more than $30 billion dollars of assets of the Central Bank of Libya and its subsidiary, the Libyan Foreign Bank (LFB). Britain said it would release more than $10 billion.

An estimated $150 billion of assets were frozen around the world in February after the Security Council ordered sanctions against late strongman Muammar Gaddafi, who was overthrown at the end of an uprising in which tens of thousands died.

The new Tripoli authorities have stepped up calls in recent weeks to release money to pay for salaries and key services amidst a growing threat of economic deadlock.

Prime Minister Abdel Rahim al-Kib and National Transitional Council chief Mustafa Abdel Jalil said the release of funds was "essential for the economic stability of Libya" in a joint letter sent to the council to plea for the freeze to be ended.

An official request for the lifting of sanctions was made one week ago and no objections were made by any of the council's 15 members enabling the assets freeze to be lifted on Friday.

On top of more than $30 billion blocked in U.S. accounts, Britain's Foreign Secretary William Hague said his government would immediately act to free about 6.5 billion pounds ($10 billion) held in Britain.

The easing of the sanctions "marks another significant moment in Libya’s transition," Hague said in a statement.