Kuwait's foreign minister said his country would transfer $180 million to Libya's rebel Transitional National Council, making use of a newly agreed mechanism for channelling funds.

"Kuwait had promised $180 million to the temporary financial mechanism," Sheikh Mohammad al-Salem al-Sabah told reporters at a summit of Western and Arab countries backing Libya's rebels.

"Today it has been announced that this mechanism has been completed. We will transfer immediately this amount to the account of this fund," he said.

A member of an Arab delegation said the payment mechanism involved transfers to a Gulf bank.-Reuters