Libyan Rival Factions Reach Agreement on Central Bank Governor
The Benghazi Chamber of Representatives, representing the eastern part of the country, and the Tripoli-based High Council of State, have reached an agreement to appoint a governor for the Central Bank of Libya (CBL). This development could finally put an end to a crisis that has severely reduced the country's oil production.
The two legislative bodies engaged in two days of tense negotiations, facilitated by the United Nations Support Mission in Libya. Both sides recognized that the situation was benefiting no one. The CBL is the sole legal repository of Libya's oil revenues and pays the salaries of state employees across the country.
However, the solution is not yet complete. The appointment of a governor and a board of directors will take up to 30 days. The eastern and western factions have agreed to extend consultations for an additional five days.
The impasse began when western factions, recognized internationally, decided last month to oust veteran Siddik al-Kabir and replace him with a rival board of directors. This prompted eastern factions to declare a complete halt to oil production, threatening to end four years of relative stability.
As a result, Tunisian exporters to Libya will have to wait even longer for payments from the country. The situation is highly concerning, as international payments are now entering their second week of paralysis.
Moreover, the underlying problem of deep political divisions remains. Having rival governing institutions with limited legitimacy will continue to destabilize a country once considered an economic lung for Tunisia.
