UN announces deal in Libya central bank crisis

A picture shows a view of Libya’s Central Bank headquarters in Tripoli on August 27, 2024. – The United States gave its backing on August 27 to UN efforts to resolve differences between Libya’s rival administrations over the mangement of the central bank without cutting off vital oil income. (Photo by Agence France-Presse)

TRIPOLI, Libya — The United Nations (UN) mission in Libya on Wednesday announced a compromise between the North African country’s rival powers aimed at resolving a crisis over its central bank.

“Following a new round of consultations facilitated by the United Nations Support Mission in Libya (UNSMIL) regarding the crisis at the Central Bank of Libya, representatives from the House of Representatives and the High Council of State reached compromise on appointing new leadership for the bank,” the mission said in a statement.

It said parliament and the High Council of State, which acts as a senate, initialed an agreement “on the procedures, criteria, and timelines for appointing a Governor, Deputy Governor, and Board of Directors” for the bank.

A signing ceremony is set to take place Thursday, it said.

READ: UN hosts Libya rivals for central bank crisis talks

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

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

Tensions had 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, who later told the Financial Times he had fled the country.

On August 18, the central bank announced suspension of 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

The UN has held talks with the rival powers to find a way out of the bank crisis which has threatened Libya’s vital oil income.

Kabir, in office since 2012, had been criticized for his management of oil revenues and budget, considered to be too favorable to Haftar.

Most of Libya’s revenue comes from its oil resources, with the country’s production mainly in the east.

Output recently returned to 1.2 million barrels per day, whereas under Kadhafi it was between 1.5 million bpd and 1.6 million bpd.