Italian Firms May Put Libyan Embassy Out of Business
Irritated Italian businessmen probably have done more than private citizens anywhere else to put the squeeze on Libya and its leader, Col. Moammar Kadafi, by winning court orders to freeze Libyan assets in Italy until the radical country pays its long-overdue bills.
Their action may produce an unexpected diplomatic bonus for those who agree with Washington’s call to further turn the screws on Libya: It could effectively shut down the Libyan People’s Bureau--or embassy--in Rome.
The embassy’s account apparently is part of about $25 million in Libyan assets, held in five Italian banks, that have been frozen. Lawyers for two Italian firms involved in a court action said this week that the embassy may soon run out of cash.
According to Italian press reports, another 20 Italian firms that claim that Libya owes them a total of $142 million also plan court action for a further freeze on Libyan assets.
The freeze could last a long time. The embassy and the affected banks filed an appeal against it last month, but their case was rejected by a Milan court.
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