Libya's Central Bank Crisis: Steps Towards Resolution Amid Oil Revenue Struggles

Libya's eastern and western legislative bodies have signed a UN-mediated agreement to resolve the central bank leadership issue. They nominated Naji Mohamed Issa Belqasem as interim governor and Mari Muftah Rahil Barrasi as deputy governor, aiming to defuse the crisis that has impacted oil output and exports.

Representatives from Libya's rival eastern and western legislative bodies have signed a United Nations-mediated agreement on Thursday to address a leadership crisis at the country's central bank. The deal, which includes nominating Naji Mohamed Issa Belqasem as interim governor, and Mari Muftah Rahil Barrasi as deputy governor, could help resolve tensions over oil revenues and boost Libya's diminished oil output.

The signing came after the head of the Presidential Council in Tripoli, Mohammed al-Menfi, attempted to replace veteran central bank governor Sadiq al-Kabir, leading to an eastern faction's order to halt oil production. This move significantly reduced Libya's oil exports in September.

Libya has experienced deep divisions since 2014, following the NATO-backed ouster of Muammar Gaddafi in 2011. The U.N. special adviser on Libya, Stephanie Williams, emphasized the importance of resolving the oil production disruptions and urged all parties to avoid unilateral actions that could further escalate political tensions and deepen institutional divides.

(With inputs from agencies.)