Riyadh, Saudi Arabia—The Arab Monetary Fund has signed a $1 billion agreement with the Yemeni government to shore up the war-scarred country’s economic reform program.
Sponsored by the Kingdom of Saudi Arabia, the program seeks to contribute to backing efforts made to implement reforms to strengthen the financial status of the Yemeni government, and develop the financial and banking sector, the Saudi Press Agency (SPA) quoted Saudi Minister of Finance Mohammed bin Abdullah Al-Jadaan as saying.
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The program also aims to create and enable environment to enhance the role of the private sector, and involve it in the process of sustainable economic development, it said.
The program, led by the AMF as a technical body during the period (2022-2025), aims to establish the foundation of economic, financial, and monetary stability in Yemen, enhance its public finance and external position, and rebuild its institutions and enhance its governance and transparency to create the macroeconomic environment to expand and diversify the productive base, it noted.
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It seeks to promote comprehensive and sustainable economic growth, create job opportunities and push sustainability of Yemen’s economy, as well as advance the process of economic and social development, and reduces unemployment and poverty rates, according to the agency.
It said that the reform priorities in the government’s financial sector include developing its public resources, controlling and rationalizing government spending, enhancing its efficiency and governance, directing it to urgent priorities, and rehabilitating vital infrastructure in the electricity, water, and road sectors, in a manner that establishes sustainability of the financial situation and enhances confidence in the national economy.
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In addition, the reform priorities include developing the private sector to assume its position as the main engine for comprehensive and sustainable economic growth, opening the way for further integration into the global economy and the flow of foreign investments, and strengthening international partnerships, it stated.
The Yemeni government reiterated its commitment to implementing this comprehensive program with technical assistance from the AMF, according to the agency.
The government also said it looks forward to the program opening wide areas for regional and international institutions and donors to activate cooperation to support efforts to reform the Yemeni economy.