The two rival parliaments in Libya agreed to jointly appoint a new governor of the central bank, Reuters reported, quoted by BTA .
The agency notes that this could also potentially end the conflict over control of oil, which has led to reduced production.
The House of Representatives, based in the eastern Libyan city of Benghazi, and the Supreme Council of State in the capital Tripoli, in the west, signed a joint declaration yesterday after two days of UN-brokered talks. The two camps agreed to appoint a new governor and governing board of the central bank within 30 days, as well as to continue their talks for another five days - until September 9.
In Libya, oil revenues can only be legally kept in the central bank, which also remits the salaries of civil servants throughout the country, according to Reuters.
The standoff began last month when Western factions, whose backed government is internationally recognized, ousted central bank governor Sadiq al-Kabir and replaced him with a governing council they appointed. In response, eastern militias halted oil production. The dispute threatens to end four years of relative stability in Libya, Reuters notes.
Oil production has already partially resumed in anticipation of the deal and prices fell 5 percent yesterday to their lowest level in nearly 9 months.
Libya's central bank has been paralyzed by the fight over who controls it and has been unable to transact for more than a week as a result. At the root of the problem is the fragmented political landscape in the North African country, where there are parallel institutions with low legitimacy, summarizes Reuters.
A NATO-backed uprising in 2011 against longtime authoritarian leader Muammar Gaddafi plunged the country into chaos. Western and Eastern Libya effectively split in 2014.