Liberia

Libya shows it is ‘capable of overcoming its differences’ with rare budget deal, central bank says.

Libya’s rival legislative bodies have approved a unified state budget for the first time in more than a decade, in a rare moment of cooperation in a country fractured by years of conflict.

The Central Bank of Libya confirmed on Saturday that both chambers had endorsed the budget, describing the move as a step towards restoring financial stability after prolonged division.

Governor Naji Issa said the agreement showed the country could overcome internal rifts.

“This is a clear declaration that Libya is capable of overcoming its differences when a unified vision for its future is forged,” he said during a signing ceremony in Tripoli.

Libya has remained split since the 2014 civil war, which created rival administrations in the east and west. The last time the country operated under a single national budget was in 2013.

The deal brings together the eastern-based House of Representatives (HoR) and the Tripoli-based High Council of State, two institutions that have long competed for authority.

Representatives from both sides signed the agreement in the capital, where the internationally recognised Government of National Unity is based under Prime Minister Abdul Hamid Dbeibah.

Despite the breakthrough, political divisions remain entrenched. In the east, forces loyal to Khalifa Haftar maintain control over large parts of the country, including key oil-producing regions.

His self-styled Libyan National Army dominates major export terminals along the northeastern coast, as well as significant oil fields in the south and southeast.

The timing of the agreement underscores Libya’s growing importance in global energy markets. Demand for its crude has increased amid disruptions linked to the Israel-US war on Iran and the blockade of the Strait of Hormuz.

Libya’s geographic position offers a critical advantage. Oil shipments from its ports reach European refineries quickly and avoid the risks associated with Gulf routes, including military escorts and high insurance costs.

Its light, sweet crude also meets the needs of European refiners facing ongoing supply challenges.

Previous attempts to stabilise Libya’s energy sector have relied on informal arrangements rather than institutional agreements. In 2022, during another period of energy crisis triggered by the war in Ukraine, key figures from rival factions struck a deal to keep oil flowing.

The new budget agreement signals a shift towards more formal cooperation, even as Libya’s political fragmentation persists.

U.S. government attorneys on Tuesday told a federal judge the Department of Homeland Security still intends to deport Kilmar Abrego Garcia to Liberia, despite a new agreement with Costa Rica to accept deportees who cannot legally be returned to their home countries.

The Salvadoran national’s case has become a focal point in the immigration debate after he was mistakenly deported to El Salvador last year. Since his return, he has been fighting a second deportation to a series of African countries proposed by Homeland Security officials.

U.S. District Judge Paula Xinis, of Maryland, previously barred U.S. Immigration and Customs Enforcement from deporting him or detaining him. She has written that the agency has no viable plan to actually deport Abrego Garcia, referring in February to “one empty threat after another to remove him to countries in Africa with no real chance of success.”

Abrego Garcia has argued that if he is going to be deported, it should be to Costa Rica, which previously agreed to accept him. But Todd Lyons, the acting head of U.S. Customs and Immigration Enforcement, said in a March memo that deporting Abrego Garcia to Costa Rica would be “prejudicial to the United States.” Abrego Garcia should be sent to Liberia because the U.S. has spent government resources and political capital negotiating with the West African nation to accept third-country nationals, Lyons wrote.

At a Tuesday hearing in Xinis’ court, Ernesto Molina, director of the Department of Justice’s Office of Immigration Litigation, suggested that Abrego Garcia could “remove himself” to Costa Rica.

Xinis pointed out that the Justice Department is prosecuting him in Tennessee on human smuggling charges. She called it a “fantasy” to say that he can remove himself anywhere while the criminal case is pending. Xinis set a schedule for a briefing on the matter and scheduled a new hearing for April 28.

Abrego Garcia, 30, has an American wife and child and has lived in Maryland for years, but he immigrated to the U.S. illegally as a teenager. In 2019, an immigration judge ruled that he could not be deported to El Salvador because he faced danger there from a gang that had threatened his family. By mistake, he was deported there anyway last year.

Facing public pressure and a court order, President Trump’s administration brought him back in June, but only after securing an indictment charging him with human smuggling in Tennessee. He has pleaded not guilty and asked the judge to dismiss that case.

Loller writes for the Associated Press.