The U.N. mission in Libya will restart negotiations between factions in Tripoli on Wednesday. The discussions aim to address the central bank crisis that has drastically reduced oil production and jeopardized recent stability.
Libya’s two legislative bodies, the House of Representatives in Benghazi and the High Council of State in Tripoli, have agreed to jointly appoint a central bank governor. This move could resolve the ongoing conflict over control of Libya’s oil revenue.
The central bank, Libya’s exclusive legal repository for oil income, is crucial for paying state salaries nationwide. The initial consultations were scheduled to end on Monday with a decision on the governor and board within 30 days but were extended by five days last week.
The U.N. mission emphasized the urgency of reaching a consensual solution to mitigate the crisis’s impact. The Presidential Council in Tripoli, which rarely intervenes directly, recently moved to replace central bank Governor Sadiq al-Kabir, sparking protests from eastern factions and halting oil flows.
Libya has faced instability since the 2011 NATO-backed uprising, with divisions between eastern and western factions. Despite a 2020 ceasefire and efforts to reunify, significant divisions remain.
