Read < 1 minute

The United Nations Support Mission in Libya (UNSMIL) says Libya’s two rival legislative bodies reached an initial agreement to appoint a new management for the country’s central bank.

“Following a new round of consultations facilitated by UNSMIL regarding the crisis at the Central Bank of Libya, representatives from the House of Representatives and the High Council of State (in the west) reached a compromise on appointing new leadership for the bank,” UNSMIL said in a statement.

“The two parties initialed an agreement on the procedures, criteria, and timelines for appointing a Governor, Deputy Governor, and Board of Directors for the Central Bank of Libya, in accordance with the provisions of the Libyan Political Agreement,” it said.

A signing ceremony will be hosted on Thursday, it added.

Tensions have escalated since the internationally-recognized western-based chamber decided to oust veteran central bank Governor Sadiq al-Kabir. The HoR rejected this decision, prompting the eastern-based government to close all ports and oil fields under its control.

Since the fall of the late leader Muammar Gaddafi’s regime in 2011, Libya has been struggling with fragmentation. The country is now divided between two main rival administrations: the eastern-based government, backed by the HoR, and the western-based government in Tripoli.

This divide has led to frequent clashes, competing claims of legitimacy, and struggles over control of resources, including oil. Despite numerous attempts at reconciliation and international mediation, Libya remains politically unstable and divided.