UN hosts Libya rivals for central bank crisis talks

FILE – A view of a locator map for Libya with its capital, Tripoli. Libyan officials say clashes between two heavily armed militia groups in the country’s capital terrorized residents and killed about a dozen people, the latest bout of violence in the largely lawless North African nation. (AP Photo, File)

Tunis, Tunisia — The United Nations said it held talks Monday with rival powers in Libya over the country’s central bank crisis which has threatened vital oil income.

The UN Support Mission in Libya hosted the two administrations separately for discussions “marked by open and candid dialogue”, it said in a statement.

The “efforts to resolve the crisis” follow a series of events which the eastern administration said were attempts by the Tripoli-based, UN-backed government to seize control of the central bank.

READ: Libya east administration closes oil fields over central bank rift

Tensions have been rising since early August when a group of men — some armed — laid siege to the bank demanding the removal of governor Seddik al-Kabir.

Following “threats” from armed groups, Kabir told the Financial Times last week he had fled the country.

The UN mission said the talks in the capital Tripoli “concluded with significant understandings” between the two sides “on ways to address” the bank crisis.

“They further agreed to submit the draft agreement to their respective Chambers for review” with the aim of signing the deal on Tuesday, the UN said on social media platform X.

Libya is split between the UN-recognised government led by Prime Minister Abdulhamid Dbeibah, and the rival administration in the east backed by military strongman Khalifa Haftar.

On August 18, the central bank announced it was suspending all operations following the abduction of its information technology chief. He was eventually released.

READ: Libya’s central bank governor fired as country’s deep divisions persist

Days later an eastern-based administration in divided Libya said that an “outlaw group” close to UN-recognized government based in Tripoli had forcibly taken over the central bank.

As a result, the administration based in the eastern city of Benghazi said it was suspending operations across oil fields and terminals in areas under its jurisdiction.

Libya is struggling to recover from years of conflict after the 2011 NATO-backed uprising that overthrew longtime dictator Moamer Kadhafi.