Rival legislative bodies in eastern and western Libya have signed a US-brokered agreement to unify government spending in the divided country for the first time in more than a decade, the central bank announced Saturday.
This North African country is struggling to recover from the chaos that erupted following the 2011 Arab Spring uprising, which toppled longtime leader Muammar Gaddafi.
It remains divided between a UN-recognized government, led by Prime Minister Abdulhamid Dbeibah and based in Tripoli, and an eastern administration in Benghazi, supported by military leader Khalifa Haftar.
This measure reflects real progress towards unifying fiscal policy and strengthening sound public spending management," the central bank said of the new budget, describing the agreement as "the first consensus on unifying spending across Libya in more than 13 years."
The agreement was signed by Issa Al-Arebi, representative of the House of Representatives based in Benghazi, and Abdul Jalil Al-Shawish, representative of the High Council of State in Tripoli.
Although it generated $22 billion in oil revenues last year – an increase of more than 15 percent on the previous year – Libya faces a foreign currency deficit of $9 billion, according to the central bank.
Last January, the bank devalued the dinar by almost 15% for the second time in less than a year, citing a series of problems, including the lack of a unified national budget.
The central bank said the new agreement would strengthen the country's financial stability, praising the "positive role of the United States in supporting mediation efforts" between the two sides.
Libya holds Africa's largest oil reserves, with approximately 48.4 billion barrels, and currently produces around 1.5 million barrels per day, while seeking to increase its production to two million.
Mr. Dbeibah also thanked Massad Boulos, Donald Trump's senior advisor on Arab and African affairs, for "supporting the mediation efforts that led to this agreement."
"This is a promising step forward, but the real test lies in the serious commitment of all parties, so that this translates into tangible results for citizens in their daily lives," Mr. Dbeibah wrote in a statement.
