Libyan Delegates Bridge East-West Divide Over Central Bank Leadership

Delegates from Libya's divided east and west have reached an agreement on appointing a governor, deputy governor, and board of directors for the central bank. This move is expected to resolve the crisis over control of the bank and oil revenue, which has severely impacted Libya's oil output and exports.

Delegates from Libya's divided east and west have successfully agreed on procedures, criteria, and timelines for appointing a governor, deputy governor, and board of directors for the central bank, according to a United Nations Libya mission (UNSMIL) statement released on Wednesday.

This pivotal agreement aims to address the ongoing crisis over control of the central bank and the crucial oil revenue that has resulted in a significant reduction in Libya's oil output and exports. The country has experienced deep divisions since 2014, following the chaos post the 2011 NATO-backed uprising that toppled Muammar Gaddafi.

The crisis accelerated last month when Tripoli-based Presidential Council head, Mohammed al-Menfi, attempted to replace veteran central bank Governor Sadiq al-Kabir. This move led to fierce opposition from eastern factions and a blockade of oil flows. The National Oil Corporation reported a drastic decline in oil production as a result. According to UNSMIL, representatives from the eastern House of Representatives in Benghazi and the western High State Council in Tripoli have now reached a compromise on appointing new central bank leadership. A signing ceremony is planned for Thursday with international community attendance.

(With inputs from agencies.)