Libya reaches temporary agreement aimed at resolving Central Bank crisis
In the midst of negotiations to resolve the crisis at the Central Bank of Libya, representatives of the House of Representatives and the Supreme State Council have announced a temporary agreement related to the functioning of the body until a new governor and board of directors are appointed.
The parties involved reached this pact after a new round of consultations took place between representatives of the House of Representatives, the Supreme State Council and the Presidential Council to discuss ways of resolving the banking crisis with the support of the United Nations Support Mission in Libya.
Representatives of the House of Representatives and the State announced through a statement that the agreements reached between the two chambers include working to appoint a new governor for the Central Bank as well as proposing members of the Board of Directors within ten days from the date of taking office.
It was also agreed to adopt standards of professionalism, competence and integrity for all those assuming responsibilities within the Central Bank of Libya and to continue consultations with the other members of the two boards with the aim of ending the crisis.
The UN mission echoed these developments and confirmed that representatives of the House of Representatives and the Supreme Council of State had agreed on the general principles that would govern the intermediate phase preceding the appointment of the governor and the board of directors of the bank.
However, there are still disagreements between the two sides. The disagreements between the House of Representatives and the State on the one hand, and the Presidential Council on the other, are related to the decision of the latter body - which is part of the executive branch and based in Tripoli - to dismiss the bank's governor, Al-Siddiq Omar Al-Kabir, and appoint another.
This crisis has led to problems in Libya's banking transactions, as well as the closure of oil fields and the cessation of exports. All this threatens the country's economy, which is 95% dependent on oil revenues.
This recent agreement generates hope within Libyan society amid instability and insecurity. However, for Libyan political and economic analyst Ayoub Al-Awjali, this pact is not enough, pointing out that if the committee assigned by the Presidential Council continues, ‘it will represent a great danger for the future of the political crisis in Libya, as the body will think that it was able to impose its point of view unilaterally’.
Regarding the other points mentioned in the communiqué, especially the part about ‘continuing consultations aimed at ending the crisis’, the Libyan analyst explains to Al-Ain that this implies ‘that there is no final agreement’, as ‘the House of Representatives wants to put pressure on the Presidential Council to withdraw its non-binding decision’.
For his part, Ziad Daghim, advisor to the President of the Presidential Council and representative of the Presidential Council in the negotiations on the Central Bank crisis, confirmed that the Presidential Council will welcome everything agreed by the House of Representatives and the State regarding the election of a new governor of the Central Bank in a consensual manner before the agreed deadline of 3 October.
He also added that the Presidential Council assured the UN of its strict commitment to Security Council resolutions and its willingness to support its efforts in Libya.
In this regard, the UN Support Mission in Libya welcomed the progress made on the principles, rules and timelines related to the appointment of a new governor and board of directors of the Central Bank, although it ‘regrets that the two parties have not yet reached a final agreement’.
Through its social media, the UN Mission in Libya called on all parties ‘to take responsibility to address this crisis quickly, as its continuation poses serious risks to Libyans and to Libya's relations with its international partners’.
The mission also reiterated that ‘unilateral decisions taken by all parties, in various parts of the country, would undermine trust between political and security parties and perpetuate institutional divisions’, stressing that a meaningful and comprehensive dialogue ‘is the only way to achieve consensus among Libyans’.
Late last month, Libyan authorities in the east of the country decided to halt oil production and exports until further notice in protest at the Tripoli authorities' control over the headquarters of the Central Bank of Libya and the dismissal of its governor. The Tripoli-based financial body has been the main focus of tensions between the rival governments recently.