Turkey and its Libyan ally UN-backed Government of National Accord (GNA) Thursday inked a Memorandum of Understanding (MoU) in the area of trade and a new plan meant to solve pending issue, Libyan Observer reports citing Turkish Trade Minister Ruhsar Pekcan.

The deal signed Thursday, according to Pekcan will lay the groundwork for resolving ongoing issues between Turkish firms and Libyan employers, setting new investments and undertaking new projects.

Ties between Turkey and GNA have been further boosted since late last year after the two sides signed a maritime and a security deal. Turkey has emerged as the main global ally of the Tripoli-based Libyan government struggling to take control of the entire oil-rich North African country.

The GNA is facing tough opposition from a rival government based in the east. It is backed by Russia, UAE, Egypt and France. The rival administration launched in April last year a military offensive to overrun Tripoli but Turkey’s decisive support derailed the plan.

Though GNA and Ankara enjoy good relations, there are still a number of frictions. Some contracting projects undertaken by Turkish companies in Libya have been interrupted recently, over uncertainties regarding the completion of these projects while Turkish companies had remaining receivables in these projects, Pekcan said.

The GNA Planning Minister, Al-Taher Al-Juhaimi, who signed the deal on behalf of the Libyan side, indicated that Libya trusts Turkish firms that control 20 per cent investment projects in the North African country, Libya Observer reports.