Central bank of Yemen adopts DMFAS system [Archives:2004/722/Business & Economy]

March 22 2004

Mahyoub Al-Kamaly
The mayor of the Central Bank of Yemen Ahmed al-Samawi has recently said that Yemen has scored great successes in the installation and operation of the UNKTAD Debt Management and Financial Analysis System/DMFAS that is adopted by all international organisations as the best system for paying back debts.
The Central Bank has in cooperation with the UNKTAD organised a training workshop for 35 trainees where they got acquainted with the mechanism of implementing the criteria of the system pertaining t the strategy of public debt. Mr al-Samawi has deemed that connecting the Central Bank of Yemen to this system would help analyze and pinpoint financial requirements of Yemen and work out means and successful measures for paying debts.
The central bank mayor has also affirmed the bank's intention of training ad qualifying its cadres in various banking specialties that would contribute to promote the banking performance and to be reflected on the banking performance in Yemen generally.
Mr al-Samawi pointed out the success the Yemeni banking sector and the monetary policy had realized during the past years, indicating that the total amount of deposits in this sector amounted to YR 476 billion while in 1995 they were not exceeding YR 50 billion when the government inaugurated the program of economic reform.
Mr al-Samawi also pointed out that those successes have pushed the Cyprus-based Capital Intelligence Establishment to promote the degree of its evaluation of the credit merit of Yemeni commitments to the foreign currency. It raised the evaluation from (c) to (b) for the long-term and from (c) to (b) for the short-term. The Establishment has for the first time given credit merit for Yemeni commitments in local currency, granting it (b) degree.
The establishment has justified the improvement of those indicators by the surpluses achieved in the current balance of the balance of payments and accumulation of official monetary reserves that have lately exceeded $5 billion, in addition to a series of rescheduling of Yemeni debts for members of Paris Club and others. This has led to reducing the total value of the loans to the half.