UN Mediates Agreement between Libyan Factions to Resolve Central Bank Crisis

The United Nations Support Mission in Libya (UNSMIL) announced that Libya's two rival legislative bodies have agreed to work towards resolving the central bank crisis within a few days.

The UNSMIL said in a statement that discussions held at its Tripoli office on Monday and Tuesday led to an agreement between the eastern-based House of Representatives (HoR) and the High State Council in the west on appointing a new central bank governor and board of directors, Xinhua news agency reported.

The representatives have requested an additional five days to finalise their plan for managing the central bank until new appointments are made.

According to the statement, the UNSMIL highlighted the crisis's adverse effects on Libyan citizens and international confidence in the country's banking system.

The mission commended the cooperative approach of the talks and urged all parties to avoid unilateral actions and expedite efforts to reach a final resolution.

Tensions have escalated since the internationally recognised western-based chamber decided to oust veteran central bank Governor Sadiq al-Kabir. The HoR rejected this decision, prompting the eastern-based government to close all ports and oil fields under its control.

Since the fall of the late leader Muammar Gaddafi's regime in 2011, Libya has been struggling with fragmentation. The country now is divided between two main rival administrations: the eastern-based government, backed by the HoR and the western-based government in Tripoli.

This divide has led to frequent clashes, competing claims of legitimacy, and struggles over control of resources, including oil. Despite numerous attempts at reconciliation and international mediation, Libya remains politically unstable and divided.