Rise in foreign assets of banking apparatusValuation of economic reforms in IMF & WB meetings in Dubai [Archives:2003/662/Business & Economy]

August 25 2003

Mahyoub Al-Kamaly
Government sources have mentioned that Yemen would be represented by a high-level delegation to attend meetings of Dubai for governors' council of the group of the World Bank and International Monetary Fund scheduled on 20-22 next September.
The sources expected that the annual meetings of the governor's council would discuss the Yemeni economic reforms after the elapse of eight years since the beginning of their implementation through a program technically overseen by the WB and the IMF that carry out a yearly auditing and review. The same sources clarified that the Yemeni delegation, that will compose two deputy premiers, the minister of finance and the minister of planning and international cooperation and mayor of the Central Bank, would take part with most of world countries in the meetings that are going to be held under the slogan ''Road to world and regional economic prosperity hallenges and opportunities''. Yemen is a member in the World Bank and the IMF and depends on them in supporting its present economic orientations and seeks their guidance by advices offered by experts of those two establishments.
It is expected that there would be a discussion of working programs of both the WB and IMF in the member states, including the ongoing economic reforms in Yemen and progress of the development programs that are supported by the IMF and the WB in the republic of Yemen.
The Yemeni delegation to the meetings of Dubai would present a review of the present economic situations in Yemen and the government efforts in implementation a national strategic policy for fighting poverty and alleviating it during the years 2003-2005. Those Yemeni efforts have been approved t be funded by the WB and the IMF in the donors meeting in Paris at the end of last year with a fund amounting to around 2.8 billion dollars.
Yemen is currently facing great challenges in human development and its non-possession of scientific means for predicting the volume of social disasters that might happen because of the spread of the phenomenon of poverty in the country.
Official reports indicate that the net amount of banking system foreign assets till the end of June 2003 have increased to around YR 925.5 billion in comparison with the amount of YR 917.2 billion, i.e. an increase amount of YR8.3 billion equaling a percentage of 0,9 %, according to report published by al-Thawra daily newspaper. The report has made it clear that the monetary supply has increased from YR 699.2 billion to 707.2 billion during the same period. While the government's stand with the banking apparatus till the end of last June amounted to YR 56.4 billion.
On the other hand the economic reforms in Yemen have had negative results and impact on those of limited income who have lost the government subsidies to necessary food stuffs. The government is trying to contain the burdens and consequences through social safety networks and the strategy of fighting poverty that it has embarked on implementing it since the beginning of this year.