Libya’s warring factions geared up for crunch talks Monday as world leaders called for "bold political decisions" to prevent the oil-rich nation crumbling into a failed state.

Libya's warring factions geared up for crunch talks Monday as world leaders called for "bold political decisions" to prevent the oil-rich nation crumbling into a failed state.

Amid warnings that chaos in Libya has allowed ISIL group to make inroads on Europe's doorstep, United Nations envoy Bernardino Leon is pushing for an agreement before the start of the Muslim holy month of Ramadan on June 17.

"The timing for fighting has passed, the moment for bold political decisions has come," G7 leaders said in a closing statement after a summit in Germany.

"Libyan leaders must now grasp the opportunity to conclude these negotiations and form a Government of National Accord accountable to the Libyan people."