YR 100 Billion in Debt [Archives:1999/10/Local News]

March 8 1999

With the new issue of treasury bills last week, the total value of all outstanding T-bills issued by the Central Bank of Yemen on behalf of the State of Yemen is close to YR 100 billion. While most of the money goes to finance the deficit in the government budget, some of its is used as a tool to dampen inflationary pressures by withdrawing purchasing power from consumers.
Mr. Abdullah Al-Olofi, Deputy Governor of the Central Bank, indicated that the average interest rate paid on the T-bills is 18%. He also indicated that there should not be worries about repayment. “These bills are recycled. As old bills mature, new ones are issued,” he said.