Libya welcomed a US move to relax its trade embargo on the North African state and said bankers from the two countries were discussing ways to unfreeze Libyan assets in the United States.
Washington said on Friday it would allow US firms to buy Libyan oil and invest as a reward to Tripoli for giving up weapons of mass destruction development programmes.
But some restrictions remain and frozen Libyan assets are still blocked. Libyan officials say assets worth about $1 billion are frozen in the United States, including equity holdings in banks.
"We welcome this decision which comes in the framework of developing relations between America and Libya," Foreign Minister Mohammed Abdel-Rahman Shalgam told reporters on the sidelines of a conference in Tripoli.
"Libyan and American bankers are now discussing a mechanism to free up these assets," he said, adding that some sanctions such as a ban on the US export of items with the potential to be used for military purposes were still in place for technical, not political reasons.
Although assets remain blocked, a Libyan banking official said there would be no further freezing, which would previously have occurred if, for example, any Libyan dollar transactions were cleared through New York.
"Now new funds cannot be blocked. New funds can go through New York without any problems," the banker said, saying the new arrangements were expected to become effective during this week.
"For us, especially the banking sector, it is an immense relief. It will allow us to conduct business in the most profitable investment market in the world," the Libyan banker said.
Lifting sanctions also opens the way for US oil firms to return to the OPEC member after several firms abandoned assets in Libya in the 1980s. Libya has struggled to maintain production with US equipment but no access to spare parts.
Bilateral trade began straight after Friday's US announcement. Libya said on the same day that it had confirmed its first shipment of oil to the United States in more than 20 years, with the crude cargo due to be loaded in May.
The US announcement follows a steady improvement in Libya's ties with the West after years of international isolation. UN sanctions were lifted last year after Libya accepted responsibility for the 1988 Lockerbie plane bombing.
The European Commission said Libyan leader Muammar Gaddafi aimed to fully restore ties with Europe in his first trip to the continent in 15 years this week, although some disputes needed to be resolved.
Mr Shalgam told reporters that Libya would soon hold a new round of talks to settle a dispute with Germany, which is seeking compensation over the 1986 bombing of a Berlin nightclub.
"Negotiations are taking place between Germany and Libya. Two rounds of talks were held previously and the next round will be held in the middle of next month to reach a settlement regarding this file between the two countries," the Libyan minister said.
A Berlin court has ruled that the Libyan secret service was behind the attack in which three people were killed and 200 hurt.