Banking sector vis-a-vis floundering debtsBanks total amount of unified budget amounts to YR712 billion [Archives:2005/867/Business & Economy]

August 11 2005

The total amount of the Yemeni banking sector' unified budge has risen from YR 660 billion in the mid of 2004 to YR 712 billion in the first half of this year. This registers an increase of YR 52 billion and a growth rate by around 8%.

The national banks have gained a 70% of the gross of banking activity while the foreign banks got 30%. Meanwhile assets of deposits in the first half of this year have risen to YR 611 billion compared to 576 billion at the end of last yes, at an increase of YR35 billion.

As for loans and funding from the commercial banks to economic sectors, they have risen to YR 212 billion in the first half of 2005. On the other hand, financing the trade gained around 48% in forms of loans. Industrial activities loans gained 18%, construction sector 9%. Regarding rights of property for working banks have in the first half of this year risen to YR490 billion.

Mayor of the Yemeni Central Bank Ahmed al-Samawi had earlier chaired a meeting for chairmen of boards of directors and directors of commercial banks. During the meeting they discussed stability of currency exchange rate and measures the bank had taken to limit speculation on local currency and its siding with the riyal for making it a priority for savers through raising proportions on deposits of foreign currencies as well as giving high interest rates to savings in Yemeni riyal and supplying the market with its needs of foreign currencies.

The meeting had also touched on the problems the banks were suffering from, including the unpaid debts, stressing the necessity of cooperation of all banks with the central bank and the measures it is taking in this regard.