Japanese economic assistance to Yemen [Archives:2002/29/Business & Economy]

July 15 2002

Japan and Yemen have further enhanced their economic cooperation by signing on Wednesday two agreements, one to relieve Yemeni debts and another to support Yemens developmental efforts.
The first agreement was signed between H.E. Mr. Alawai Saleh Al-Salami, Deputy Prime Minister and Minister of Finance and H.E. Mr. Masamitsu Oki, Ambassador of Japan to Yemen. The two sides signed and exchanged notes at the Ministry of Finance on the third rescheduling of the Yemens debts payable to Japan with the amount of approximately 18.8 billion Japanese Yen (equivalent 156 million US dollars or 27.4 billion YR). The total amount of the rescheduled debts will be paid in 48 semi-annual installments beginning on January 1, 2018 with the rate of interest as 1% per annum. The two governments agreed on rescheduling of debts on the basis of the conclusions reached at the Paris Club Meeting on June 14, 2001 as a measure of debt relief of Yemen.
On the other hand, three notes of Japanese grants were also signed and exchanged on the same day between H.E. Mr. Ahmed Mohammed Sofan, Minister of Planning and Development and H.E. Mr. Masamitus Oki at the Ministry of Planning and Development with the total amount of 7.8 million US dollars.
The first Note is concerning the Project for Expansion of Tuberculosis (TB) Control in the Southern Goverorates amounting at 589 million yen (equivalent to 4.9 million US dollars or 859 million YR). With this grant, a new Tuberculosis Control Center will be constructed in Aden. This is the fourth such center built under Japanese grant after Sanaa, Taiz and Hodaidah. Japan has been supporting Yemeni National TB Control Program since 1983 providing technical cooperation that contributed effectively to the fight against this dangerous disease.
The other two notes are concerning the so called Debts Relief Grant with the total amount of approximately 350 million Japanese Yen (equivalent to 2.9 million US dollars or 511million YR). The Government of the Republic of Yemen, in consultation with the Government of Japan, will make the best use of these grants for the purchase of products that contribute to the development of Yemens economy and the enhancement of the welfare of its people. Such grants are based on the resolution made by the Trade & Development Board (TDB) of the United Nations Conference on Trade & Development (UNCTAD) to adopt debt relief measures for countries which have been facing serious difficulties in servicing their debts.