The UN has brokered a deal between Libyan factions to address the central bank crisis.

The United Nations Support Mission in Libya (UNSMIL) has announced that Libya’s two rival legislative bodies have reached an agreement to address the central bank crisis within the next few days.

According to UNSMIL, discussions held at its Tripoli office on Monday and Tuesday resulted in an accord between the eastern-based House of Representatives (HoR) and the High State Council in the west. The agreement involves the appointment of a new central bank governor and board of directors, as reported by Xinhua news agency.

The representatives have requested an additional five days to finalize their plan for managing the central bank until the new appointments are made.

UNSMIL emphasized the crisis’s negative impact on Libyan citizens and international trust in the country’s banking system. The mission praised the collaborative nature of the talks and urged all parties to avoid unilateral actions and swiftly work towards a final resolution.

Tensions have risen since the western-based chamber’s decision to remove long-standing central bank Governor Sadiq al-Kabir was rejected by the HoR. This dispute led the eastern-based government to shut down all ports and oil fields under its control.

Since the fall of Muammar Gaddafi’s regime in 2011, Libya has been plagued by fragmentation, with the country split between two main rival administrations: the eastern-based government backed by the HoR and the western-based government in Tripoli. This division has resulted in frequent clashes, competing claims of legitimacy, and struggles over resource control, including oil. Despite various reconciliation efforts and international mediation, Libya remains politically unstable and divided.