Libya’s rival eastern and western legislative bodies have signed a US-mediated agreement to unify public spending across the divided country for the first time in over a decade, according to the Central Bank of Libya.
The deal represents a significant step toward fiscal coordination in a nation still grappling with political division following the 2011 uprising that toppled longtime ruler Muammar Gaddafi.
Since then, Libya has remained split between two rival administrations: a UN-recognised government led by Prime Minister Abdulhamid Dbeibah based in Tripoli, and an eastern authority in Benghazi backed by military commander Khalifa Haftar.
According to the Central Bank, the agreement marks “the first consensus on unified spending across Libya in over 13 years,” describing it as progress toward stabilising fiscal policy and improving public financial management.
The deal was signed by representatives of the rival legislative bodies: Issa Al-Arebi of the Benghazi-based House of Representatives and Abdul Jalil Al-Shawish of the High Council of State in Tripoli.
Despite generating approximately $22 billion in oil revenues last year, Libya continues to face a foreign currency deficit estimated at around $9 billion, underscoring deep structural imbalances in its economy.
Libya holds Africa’s largest proven oil reserves, estimated at about 48.4 billion barrels, and currently produces around 1.5 million barrels per day, with plans to increase output to 2 million barrels per day.
The Central Bank previously devalued the Libyan dinar by nearly 15% due to fiscal pressures, including the absence of a unified national budget.
It said the new agreement could help strengthen financial stability and improve economic governance, while also acknowledging the role of US mediation in facilitating talks between the rival factions.
Officials credited the diplomatic efforts of US adviser for Arab and African affairs Massad Boulos in supporting the negotiations that led to the breakthrough.
Prime Minister Dbeibah welcomed the agreement but stressed that its success would depend on sustained cooperation between both sides and real implementation of unified spending mechanisms.
“This is a step that carries promising signs, but the true test remains the serious commitment of all parties,” he said, adding that results must translate into tangible improvements in citizens’ daily lives.
Analysts say the agreement could mark a cautious step toward economic coordination in Libya, though long-term stability will depend on resolving deeper political divisions and establishing a unified national budget framework.
