Libya's Central Bank Crisis: Factions Edge Towards Resolution

Libya's rival factions are making headway in talks to resolve the central bank crisis, which has drastically reduced the country's oil output and exports. The UN mission in Libya facilitated discussions, aiming for an agreement by Thursday. Libya's legislative bodies intend to appoint a new central bank governor soon.

Libya's political factions made significant progress in talks aimed at resolving the central bank crisis that has been crippling the nation's oil production and exports. Discussions are set to continue on Thursday, with hopes of reaching a final agreement, according to a statement from the United Nations Libya mission (UNSMIL) on Wednesday.

The talks involved representatives from the Benghazi-based House of Representatives, the Tripoli-based High Council of State, and the Presidential Council. Participants agreed on general principles for an interim period, which will include appointing a new governor and board of directors for the Central Bank.

The crisis began last month when western Libyan factions tried to oust the central bank governor, leading eastern factions to halt all oil production. Despite a preliminary agreement to appoint a new governor within 30 days, the situation remains volatile. Data from Kpler showed an 81% drop in Libyan oil exports last week as the National Oil Corporation canceled cargoes amid the ongoing crisis.

(With inputs from agencies.)