Libya factions agree to appoint central bank governor in bid to ease crisis
Corrects throughout that the two legislative chambers do not represent different parts of Libya
CAIRO, Sept 3 (Reuters) - Libya's two legislative bodiesagreed on Tuesday to appoint jointly a central bank governor, potentially defusing a battle for control of the country's oil revenue that has slashed production.
The House of Representatives based in Benghazi, in eastern Libya,and the High State Council in Tripoli in the west signed a joint statement after two days of talks hosted by the U.N. Support Mission in Libya.
They agreed to appoint a central bank governor and board of directors within 30 days. Libya's central bank is the sole legal repository for Libyan oil revenue, and it pays state salaries across the country.
The two chambersalso agreed to extend consultations for five days, concluding on Sept. 9.
Libya has had little peace since a 2011 NATO-backed uprising and it split in 2014 between eastern and western factions. Major warfare ended with a ceasefire in 2020 and attempts to reunify, but divisions persist.
The House of Representatives parliament and the High State Council were both recognised internationally in a 2015 political agreement, although they backed different sides for much of Libya's conflict.
The standoff began when the head of the Presidency Council in Tripolimoved last month to oust veteran central bank Governor Sadiq al-Kabir and replace him with a rival board.
This prompted eastern factions to declare a shutdown to all oil production, demanding Kabir's dismissal be halted. The dispute threatened to end four years of relative stability.
Some oil output has since resumed, and oil prices dropped nearly 5% on Tuesday to their lowest levels in almost nine months in a sign that traders expect the latest agreement to get more oil flowing.
Libya's central bank has been paralysed by the battle for its control, leaving it unable to conduct transactions for more than a week. Underlying the issue is the country's fractured political landscape of rival governing institutions with tenuous claims to legitimacy.
Reporting by Hani Amara; writing by Adam Makary in Cairo and Yousef Saba in Dubai; editing by Mark Heinrich and Cynthia Osterman
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