Libya: rival governments agree to development programme

Libya’s two rival government administrations reportedly signed a deal on November 18th that would ‘unify’ their finances according to The New Arab via Reuters.

Libya is politically divided by two rival governmental parliaments. Their main internationally recognised government based in the country’s capital, Tripoli, is the Government of National Unity (GNU), led by Prime Minister Abdulhamid al-Dbeibah. The GNU was installed into power through a UN-backed process in 2021. Despite this, GNU’s rival administration based in Benghazi, the House of Representatives (HoR), has consistently challenged their authority. For the past few years, the two parties have been in a constant state of tension, with frequent reported militia clashes and national security issues present throughout the country.

While Dbeibah has invested in diplomatic bilateral foreign relations and Libya’s  oil industry in order to help develop the country, the future of the country is threatened by its ongoing political tensions. Although multiple Maghreb states have called for the unification of Libya’s rival governments, there have been no signs of peace materialising.

The Central Bank of Libya reportedly signed a deal for a ‘unified development programme’ that would see the two parties’ finances united. Development expenditures have long been a primary means for the competing administrations to access billions of dollars in oil revenues.

In an official statement, The Central Bank of Libya stated that the agreement “establishes a clear framework for unifying spending channels and allocating funds for development projects.” They went onto describe the programme as “a proactive and necessary step to protect the macroeconomy from larger crises.”

The financial unification programme represents a major step towards collaboration for the GNU and HoR, while both parties are seemingly at odds with each other.

The New Arab via Reuters, Maghrebi.org