Sponsored by KSA, Arab Monetary Fund signs USD1 billion agreement with Yemeni government to support the economic and financial reform program

Sunday 1444/5/3 - 2022/11/27
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Riyadh, November 27, 2022, SPA -- Sponsored by the Kingdom of Saudi Arabia, the Arab Monetary Fund (AMF) signed in Riyadh today a USD1 billion agreement with the Yemeni Government aimed at supporting its comprehensive economic, financial and monetary reform program.
On this occasion, Saudi Minister of Finance, Mohammed bin Abdullah Al-Jadaan, said that the program aims to contribute to supporting the efforts made to implement reforms aimed at strengthening the financial status of the Yemeni government, developing the financial and banking sector, creating an enabling environment to enhance the role of the private sector, and involving it in the process of sustainable economic development.
The program, which is led by the Fund as a technical body during the period (2022-2025), aims to establish the foundations of economic, financial, and monetary stability in Yemen, strengthen its public finances and external position, rebuild its institutions and enhance its governance and transparency, to create the macroeconomic environment to expand and diversify the productive base, and promote comprehensive and sustainable economic growth, job creation, thus leads to the sustainability of the Yemeni economy, advances the process of economic and social development, and reduces unemployment and poverty rates.
The program also focuses on a package of reforms aimed at strengthening the financial position of the Yemeni government, developing the financial and banking sector, creating an enabling environment to enhance the role of the private sector, and involving it in the process of sustainable economic development.
The reform priorities in the government's financial sector include developing its public resources, controlling and rationalizing government spending, enhancing its efficiency and governance, directing it to urgent priorities, and rehabilitating vital infrastructure in the electricity, water, and road sectors, in a manner that establishes sustainability of the financial situation and enhances confidence in the national economy.
The priorities for reform in the financial and banking sector also include developing the system of governance and banking supervision in a way that enhances transparency and accountability, and enhances financial inclusion, in a way that enables micro, small and medium enterprises, and target groups, especially youth and women in rural areas, to have access to financial services, in addition to supporting digital financial transformation, to enhance the flexibility of payment methods, and improve the infrastructure of the banking sector, and enhance its strength and supports its ability to mobilize resources, meet the financing needs of the economy, and achieve financial and economic stability.
The reform priorities also include developing the private sector to assume its position as the main engine for comprehensive and sustainable economic growth, opening the way for further integration into the global economy, the flow of foreign investments, and strengthening international partnerships.
The Yemeni Government reiterated its commitment to implementing this comprehensive program with technical assistance from the AMF, looking forward to the program opening wide areas for regional and international institutions and donors to activate cooperation to support efforts to reform the Yemeni economy.
The Kingdom's sponsorship of the agreement comes as an extension of its support for the Yemeni economy to help improve the daily life of the Yemeni people. The Kingdom deposited USD1 billion in 2012 and USD2 billion in 2018 to cover the import of basic food commodities (wheat grains, wheat flour, rice, milk, cooking oil, sugar), which contributed to the improvement of the human development index, the strengthening of the central bank’s reserves of foreign currencies, stopping the collapse of the currency, the stability of exchange rates, the decrease in fuel and diesel prices, as well as the improvement of the living standard, and an increase in the growth of the gross domestic product.
Saudi Arabia topped the list of donor countries to Yemen with about 30% of the total support provided from 2001 to 2022.
--SPA
19:01 LOCAL TIME 16:01 GMT
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