WB will not stop support, says Deputy Prime Minister [Archives:2004/770/Local News]

September 6 2004

Ismail Al-Ghabiri
Deputy Prime Minister, the Minister of Planning and International Cooperation Ahmed Mohammed Sofan, has put an end to the media rumors, that the World Bank (WB) has stopped funding Yemen due to a failure to implement economic reforms.
He stressed that ties connecting Yemen with international organizations depend on mutual understanding of economic and social reality and the requirements of the development process.
“The international organizations cooperate with Yemen, offering funds for development projects in all fields. Negotiations with the World Bank in the recent months have discussed the economic and administrative reform program and the readiness of international organizations to fund the third five-year plan,” said the minister.
The next five-year plan is being prepared by the ministry in cooperation with international organizations as well as the Millenium Project of the UNDP which has accommodated Yemen because of its commitments towards policies that foster development and overcome economic obstacles.
On the other hand, Ali Abu Hatem, charge d'affaires of the WB in Yemen, said he had no knowledge of the rumors that WB is threatening the Yemeni government that it may block support. He stated that the WB has proposed three possible paths of action to Yemen: either to offer the same aid level if the performance in reforms remains as it is, to lower volume of aid of the performance goes down, or raise size of aid if performance rises.
He added: “The WB supports Yemen currently with $600 million, while it is expected that only $300 million is to be spent annually.”
He pointed out that the Yemeni government has made strides forward in financial and economic reform, and is working hard in terms of administrative reform, for which a long time is needed.