The United States Supports UN Efforts to Resolve Libya’s Central Bank Crisis
The United States has expressed its support for the United Nations’ efforts to resolve the ongoing crisis surrounding the management of Libya’s central bank. The crisis was sparked by the eastern administration’s decision to suspend operations at all oil fields and export terminals under its control. The US embassy has stated that the UN’s intervention offers a path forward to resolve the crisis without cutting off vital oil income.
Background on Libya’s Conflict
Libya has been grappling with the aftermath of the 2011 NATO-backed uprising that led to the overthrow of longtime dictator Muammar Qaddafi. The country remains divided between the UN-recognized government in Tripoli, led by Prime Minister Abdulhamid Dbeibah, and the rival administration in the east, supported by military strongman Khalifa Haftar. Most of Libya’s oil fields are located in regions controlled by Haftar, while the Central Bank, responsible for managing oil revenues and the state budget, is based in Tripoli.
The Eastern Administration’s Response
On Monday, Libya’s eastern-based administration announced the suspension of operations at oil fields and terminals under its control. This decision was made in response to what the administration claimed were attempts by the western-based government to seize control of the Central Bank. The United Nations Support Mission in Libya (UNSMIL) swiftly called for the lifting of force majeure on oil fields and refraining from using oil revenues for political purposes.
UNSMIL’s Emergency Meeting
UNSMIL has taken immediate action to address the crisis by convening an emergency meeting for all parties involved. The mission emphasized the urgent necessity of resolving the emerging crisis and called for measures to protect the Central Bank’s employees from threats and arbitrary arrests. The UN’s intervention aims to find a peaceful resolution that safeguards Libya’s vital oil income and prevents further escalation of the conflict.
Recent Incidents at the Central Bank
The crisis surrounding the Central Bank has been exacerbated by recent incidents. On August 18, the bank’s head of information technology was kidnapped, leading to the suspension of its operations until his release later that day. Prior to this, armed men had reportedly besieged the bank in an attempt to force the resignation of its governor, Seddik Al-Kabir. These incidents have raised concerns about the bank’s management of oil resources and the state budget.
The Eastern Administration’s Claims
The eastern-based administration has accused an “outlaw group” close to the Tripoli authorities of forcibly taking over the Central Bank. In response, the Presidential Council, aligned with Prime Minister Dbeibah, has established a commission tasked with leading a “transition of powers” and installing a new bank board. The situation remains tense, and the UN’s intervention is crucial in finding a peaceful resolution.
The Importance of Resolving the Crisis
Resolving the crisis surrounding the Central Bank is of utmost importance for Libya’s stability and economic recovery. Oil revenues are the country’s primary source of income, and any disruption to its oil industry could have severe consequences for the Libyan people. The UN’s efforts, supported by the United States, aim to ensure that the management of the Central Bank remains impartial and free from political interference.
In conclusion, the United States has expressed its support for the United Nations’ efforts to resolve the crisis surrounding Libya’s central bank. The ongoing conflict between rival administrations has led to the suspension of operations at oil fields and terminals, threatening the country’s vital oil income. The UN’s intervention, through an emergency meeting and calls for the lifting of force majeure, seeks to find a peaceful resolution that safeguards Libya’s economic stability. Resolving the crisis is crucial for Libya’s recovery and the well-being of its people.