Yemen & Russia signed an Agreement [Archives:2000/01/Local News]

January 3 2000

Yemen and Russia signed an agreement to write off some of the debts due to Russia. The first agreement was called the “Paris Club” agreement, according to which 80% of the debts were canceled. Informed sources said that the present proportion of canceled debts has so far reached 67% out of the remaining 20% of the total debts due to Russia according to the Naples agreement.

Until 1990, the debts of Yemen to Russia have risen to $ 7 billion, most of which were costs for weapons and military equipment the two parts of Yemen had purchased, before the dismantling of the former Soviet Union.
Yemen has not been able to pay the installments on these debts. This has made Russia think of writing off three fourths of those debts provided that Yemen pays the rest.
A Yemeni merchant has proposed buying off the rest of those debts, however, officials in the World Bank have refused the offer and are pushing Yemen to join the International Paris Club so as to control the resources of the foreign currency. The bank will be in charge of distributing the monetary resources for the countries according to their needs and requirements, and part of it will be allocated to repay parts of loans.