Western and Arab powers were meeting in Turkey in an attempt to find a political solution for Libya that would persuade Muammar Gaddafi to give up power.
The fourth meeting of the Libya contact group, established in London in March, comes after reports suggesting Gaddafi might be ready to give up his 41-year rule if he could get a deal.
Turkey’s Foreign Minister Ahmet Davutoglu is hoping a political solution could emerge by the start of Ramadan in August.
“There has been progressive improvement of the situation on the ground,” he said. “What we need to do now is consolidate our achievements and move into the phase of conflict resolution.”
The rebels urgently needed cash and contact group members should consider opening credit lines to the rebel Transitional National Council (TNC) in Benghazi, he said.
He also backed a rebel proposal for the release of $3 billion of frozen Libyan assets to alleviate a “grave” humanitarian situation during Ramadan in areas of Libya controlled by the rebels and by Gaddafi.
“We see merit in the suggestion of the TNC for the release of $3 billion from the frozen assets of Libya under U.N. supervision and equal distribution of this amount during Ramadan season to Tripoli and Benghazi on the condition that it will only be used for providing humanitarian assistance,” he said.