Italy and Yemen finalize debt-for-development agreement [Archives:2003/669/Local News]

September 18 2003

Sanaa, September 15 – On the occasion of the visit of a senior delegation from the Italian Ministry of Foreign Affairs to Yemen, a debt-for-development swap bilateral agreement has been reached today in Sanaa. Minister of Finance H.E. Alawi Saleh Al-Salami, and his deputy Mr. Ahmed A. Ghaleb reached the agreement with Italy, which was represented by Italian Ambassador to Yemen, H.E. Giacomo Sanfelice di Monteforte.
The agreement will allow Yemen to utilize foreign currency funds allocated to reimburse soft loans, whose total value amounts to USD 15.9 millions, granted by the Italian government during the past years to the financing of additional development projects in the sectors of agriculture, education, health, protection of the cultural heritage of Yemen and basic infrastructures, in the framework and in support of the Poverty Reduction Strategy adopted by the Yemeni government in June 2002.
This agreement, which will be signed next month, is the first of its kind to be concluded by Yemen with a donor country.
The official agreement concluded today demonstrated strengthening cooperation and understanding between the two countries as they enjoy a long-lasting historical relationship.
During the last two years the total amount of the Italian aid to Yemen has substantially increased and this positive trend is likely to continue.