AMF lends Yemen $96m to support financial reform

Finance Ministry and Arab Monetary Fund (AMF) signed here on Sunday an agreement to support the financial reform program for 2013 in Yemen. Under the agreement, the AMF gives Yemen a loan of $96 million to support financial reform program in 2013, which aims at achieving stability and balance in the overall economy and improving the standard of living through ensuring basic services access and restructuring economic institutions to raise the effectiveness of the services they provide. It was signed by Finance Minister Sakhr al-Wajih and AMF Director-General and Board of Directors Chairman and Jassim al-Mannai. Hitherto, the Arab Monetary Fund (IMF) has given Yemen 25 loans, including this one, with an amount of KD 240 million ($1.1 billion). During an earlier meeting, al-Wajih briefed al-Mannai on the economic reforms made by the government in order to achieve an economic stability led to acceptable growth rates in various economic indicators. "The efforts made by the Arab Monetary Fund with the Yemeni government and its support for the economic reform process resulted in an improvement on various national economic indicators," the Minister said, stressing the government's adherence to continue the economic reforms until realizing the desired goals. The AMF Director-General said that Yemen deserved, due to the government's success in the economic reform, the second installment of the sixth ordinary loan the Fund has provided to Yemen in 2012 to support the financial reform program agreed upon in 2012. "As a result of the successes achieved by the Yemeni government in implementing the previous economic reform program, Yemen will get an amount of KD10.5 million (nearly $48 million), which is the 2nd installment of the sixth ordinary loan," al-Mannai said. He praised the previous reforms results that resulted in the improvement of many economic indicators and the government's efforts aimed at reducing interest rates and encouraging the private sector, which led to the stability of Yemen's national currency and the inflation rates. "Those indicators confirm the seriousness of the Yemeni government to continue the economic reforms, which will enhance the strong relationship between Yemen and the Fund," al-Mannai said.