Will help create stock market$50 million worth of banking capital to merge [Archives:2004/712/Business & Economy]
The Yemeni cabinet has recently approved the merging of four government and mixed sector banks into one bank.
It is expected that the volume of the government shares in the new bank, in addition to the share of partner from the private sector, will amount to $50 million, along with shares to be sold through general contribution.
The new bank will support the national economy and meet efforts of economic and social development, as well serve the middle class.
The merged banks are the National Bank, the Reconstruction Bank, Agricultural Bank and Housing Bank.
The cabinet discussed a report on the importance of restructuring the commercial banks in the direction of increasing their capitals.
The cabinet gave recommendations to the Central Bank of Yemen for setting up necessary measures for the merger.
A report presented by the governor of the central bank was sent to the council of ministers, notifying that unified budgets of banks at the end of 2003 reached about YR 540 billion, compared to YR 442 billion at the end of 2002.
The Yemeni government intends to activate role of commercial banks in order to expand their activities and encourage their merging, and also to surmount the debts they have.
The government also wants from those measures to enter into an all-out dialogue with businessmen in the commercial banks sector to reach a common vision between the government, and the private sector for the achievement of development goals.
Tackling banking situations would also help the government speed the process of establishing a stock exchange market, to prevent stagnation of investment operations.