The United Nations Support Mission in Libya (UNSMIL) announced a compromise on Wednesday aimed at resolving the ongoing crisis involving the Central Bank of Libya.
Representatives from Libya’s two rival governing bodies, the House of Representatives and the High Council of State, agreed on new leadership for the central bank during consultations mediated by UNSMIL.
The agreement outlines the procedures, criteria, and timelines for appointing a new Governor, Deputy Governor, and Board of Directors for the bank.
A formal signing ceremony is scheduled for Thursday, finalizing this crucial step toward resolving the deadlock.
Libya remains divided between the UN-recognized government led by Prime Minister Abdulhamid Dbeibah in Tripoli and a rival administration in the east, supported by military leader Khalifa Haftar.
The crisis at the central bank escalated in early August when armed men laid siege to the bank, demanding the removal of Governor Seddik al-Kabir, who later fled the country.
On August 18, the central bank suspended all operations following the abduction of its information technology chief, who was later released.
The central bank’s crisis has placed Libya’s critical oil income at risk, as the country’s economy heavily depends on oil revenues.
Kabir, who has been in office since 2012, faced criticism for allegedly managing oil revenues and the national budget in a manner favorable to Haftar’s administration in the east.
The central bank is key to managing Libya’s oil revenue, with most production located in the east of the country, which Haftar’s forces control.
Oil production recently recovered to 1.2 million barrels per day (bpd), down from 1.5 to 1.6 million bpd during the era of former dictator Moamer Kadhafi.
The deal brokered by the UN aims to stabilize the financial system and ensure Libya’s vital oil income is safeguarded amid ongoing political tensions.
The agreement could mark a turning point in Libya’s recovery from years of instability following the 2011 NATO-backed uprising that overthrew Kadhafi.
UNSMIL’s role in facilitating the deal underscores the international community’s efforts to bring stability to Libya and resolve internal disputes affecting the country’s economic and political future.
