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Libya factions consent to appoint reserve bank guv in bid to reduce crisis

The legislative bodies representing Libya's two warring areas settled on Tuesday to select jointly a central bank governor, possibly defusing a. fight for control of the nation's oil revenue that has slashed. production.

Your House of Representatives in Benghazi, which. represents the nation's east, and the High State Council in. Tripoli in the west signed a joint declaration after two days of. talks hosted by the U.N. Support Mission in Libya.

They consented to select a reserve bank governor and. board of directors within 1 month. Libya's central bank is the. sole legal repository for Libyan oil income, and it pays state. wages across the country.

The eastern and western factions also agreed to extend. assessments for five days, concluding on Sept. 9.

The standoff began when western factions, whose. governing bodies are worldwide identified, moved last. month to oust veteran central bank Governor Sadiq al-Kabir and. change him with a competing board.

This prompted eastern factions to declare a shutdown to. all oil production. The disagreement threatened to end four years of. relative stability.

Some oil output has actually because resumed, and oil costs. dropped almost 5% on Tuesday to their least expensive levels in nearly. nine months in a sign that traders anticipate the most recent contract. to get more oil streaming.

Libya's central bank has been paralysed by the battle. for its control, leaving it not able to perform deals for. more than a week. Underlying the issue is the nation's

fractured political landscape

of competing governing institutions with tenuous claims to. legitimacy.

A 2011 NATO-backed uprising plunged the nation into. chaos. West and east Libya split in 2014.

(source: Reuters)