The factions will work together to appoint a central bank governor within 30 days, according to a joint statement
Libya’s two rival governments have agreed to jointly appoint a central bank governor after a unilateral decision by the Tripoli-based Presidential Council to replace the institution’s leader sparked tensions in the volatile nation.
The UN Support Mission in Libya (UNSMIL) said the House of Representatives (HoR) based in Benghazi, in the country’s east, and the High State Council (HCS) in the capital, Tripoli, in the west, reached “important understandings” regarding the crisis during talks on Tuesday.
“The two chambers requested an additional period of five days to complete their consultations towards a final consensus on the arrangements of the management of the CBL [Central Bank of Libya] until a new governor and board of directors are appointed,” UNSMIL said in a statement.
The North African nation has had little peace since a NATO-backed uprising in 2011 toppled longtime ruler Muammar Gaddafi. The once-prosperous country has been split between two competing eastern and western administrations, with the interim Government of National Unity, which was installed as part of a UN-backed process to prepare for elections, headquartered in Tripoli. The other administration is based in Benghazi, home to the national parliament, the HoR. There have been several attempts to unite them, but all have failed.
Last month, the Presidential Council in Tripoli issued a decree removing Governor Sadiq al-Kabir – who had led the CBL since the country descended into chaos in 2011 – and replacing him with former deputy governor Mohamed Abdul Salam al-Shukri. The central bank is the only internationally recognized repository for the African country’s oil revenues and foreign reserves, as well as for paying state salaries.
The eastern faction deemed the move “unacceptable” and responded by shutting down all oil production and exports, demanding Kabir’s reinstatement.
The battle for control has reportedly paralyzed the central bank, preventing it from conducting transactions for more than a week.
UNSMIL, which was established in the aftermath of the civil war to coordinate Libya’s political process, hosted two days of talks between the rival governments’ representatives beginning on Monday in an attempt to resolve the crisis.
In a joint statement on Tuesday, the HCS and the HoR said they had agreed to appoint a governor and board of directors for the CBL within 30 days following negotiations.
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