International Aids to Yemen Alleviate Debts & Support Water and Agricultural Projects [Archives:2001/34/Business & Economy]

August 20 2001

Yemen and Japan signed two agreements according to which the Japanese government present a ¥500 million aid to increase the food production in the agricultural sector. Another aid amounting ¥137 million and ¥4 thousand were also granted to Yemen.
Signing the two agreements coincided with a food grant by the French government mounting to 9025 tons of cereals with a 25% increase from that of the previous year. The revenues of the grant will be made use of to fund some of the development projects in the agriculture and water. 700 tons of these aids would be distributed in Socotra whose residents suffer from the shortage of food.
On its part the European Commission dedicated granting Yemen a food reaching ¥ 1,885 million for social projects. It asserted in a report issued by its office in Sana’a that quarter of the Yemeni population are living below the poverty line. These amounts would be made use of to rehabilitate health centers, establishing water projects and road in Socotra Island, the report indicated.
The human affairs office in the EC stated that the office offers ¥25 million on an annual basis to support Yemen overcome social problems. These projects are part of the government responsibility and donor organizations aids to Yemen to curb the poverty and negative outcomes resulting from the economic reform program.
Japan has extended aids of ¥ 7.6 billion to the Government of Yemen. Moreover, it granted Yemen other loans for supporting the restructure reform.
Yemen and Japan signed in 1998 an agreement to reschedule debts due to Japan which are estimated at $18.2 million. According to the agreement the debts will be repaid by 48 installments every six months starting from 2015 with an interest rate not exceeding 1 percent. In addition Yemen has repaid other debts of $ 22.8 million to Japan.
On the other hand, Japan has donated Yemen other financial grants including ¥ 990 million for implementing some projects in rural areas of the republic. Moreover, the Japanese Government has donated construction machinery in addition to power stations and water pumps of ¥ 2.5 billion. Similarly, Japan has extended financial grants for supporting the agricultural production at the cost of USD 5.4 million.
It is worth mentioning that the Yemen has got promises following the meeting of the donor countries held in Brussels in 1997 for the implementation of the economic restructure project and the reschedule of Yemen’s debts.