European Union countries agreed Tuesday to toughen sanctions against Libya by targeting financial institutions linked to the country's embattled leader Moamer Gaddafi, diplomats said, dpa reported.
News came after doubts raised earlier by Malta over the "indirect effect" of the sanctions on European companies which had targeted Libyan companies among their shareholders were cleared, one EU source said.
EU governments agreed to freeze the EU-held assets of a handful of Libya's financial companies, including the Libyan Investment Authority (LIA), which has interests in several EU states and the United States.
The measure was also set to include the country's central bank, diplomats said.
The beefed-up sanctions package - adding to a visa ban and asset freeze adopted last week against Gaddafi and 25 other regime members - was expected to formally approved before EU leaders are due to meet Friday to discuss the Libya crisis.