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Yemen proceeds towards promoting

Date: 11/8/00
Time: 2:35:24 AM
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Yemen proceeds towards promoting The productive sectors and supporting Of the national economy

Official sources affirmed that Yemen shall accomplish a qualitative move during the current year 1998 through the range of economic reforms which have yielded positive results and big success represented throughout the last 3 years. Such transfers have held down the deficit of the state's general budget by reducing it to 3% by the end of 1997. The average ratio of inflation had been reduced from 110 to 5%, with stability of the national currency exchange-level against foreign currencies. Besides, the price levels were stabilized together wit holding down the deterioration of the living conditions, without affecting the average level of unemployment through executing certain projects with the co-operation of the International Bank, the International Monetary Fund and those states giving aids to Yemen. Last year the average level of GDP rises up to 5%, while a number of steps related to the fiscal policy helped in reducing the state's budget deficit; one of such has been the issuing treasury bills by the Central Bank of Yemen, and the increase in the interest rates on deposits held by the banks. The latter encouraged attracting more liquid assets that infiltrated as excess revenues to the market. In 1997, the government of Yemen signed several investment agreements related to the fields of oil and gas. The exploration activities of those two natural resources also expanded. The value of the products produced by the transforming industries also increased in 1997 by 17,9% compared to the ratio reached in 1996. A satisfactory growth rate has been noticeable in the field of public services, agriculture and construction of dams and water canals. Moreover, the government approved the implementation of the Financial Support Program forwarded by the International Monetary Fund, as well as, its own support Program of Reforming the Financial Sector. Perhaps the fact Yemen by the start of 1998 should be able to achieve a more expanding and comprehensive success is that it has become one of the states least burdened with foreign debts, which were conducted through negotiations by Yemen and the lending states within the framework of Paris Club Group. These negotiations represented an international award for Yemen upon the success of its economic policy and the reform procedures concerning this aspect. The most important gain accomplished by Yemen in such negotiations has been the cancellation of 80% of its loans accountable to the Federal State of Russia. Such loans reached 6,7 billion dollars, and the lending party agreed to re-schedule such an amount left to be settled within long-term period of 20 years, and by charging an interest rate of less than one percent. The foreign debts of Yemen have now stood as two billion and four hundred seventy million dollars, that are owed as follows:- a-572 million dollars related to the state members of Paris Club Group; b-168 million dollars related to commercial banks; c-700 million dollars related to Arab countries; and d-other debts related to certain international organization. All loans, above indicated, are neither subject to exemption, nor re-scheduling. However, regarding the first-amount, Yemen have signed individual Memorandums of Understanding with Japan, Federal Republic of Germany, France, Holland and U.S.A, whereby each state agreed to consider Yemen's request of re-scheduling each related amount of debt outstanding to their favors. By all such arrangements, the outstanding foreign debts have been reduced from representing 130% of the GDP value to 59% only. The payment by installments and interest accountable on these loans decreased from 30 to 6% in ratio. Yemen also achieved; besides eliminating most of its debts which represented an extra burden on the national economy; other success such as the government's accession of an international support of a value 1,8 billion dollars through the Conference of the Aids received from some European countries. This has been beside the supports, gifts and loans borrowed on easy terms, most of which without payments of interests, and derived from a number of states, regional organization and international institutions by exceptional means and process. Further, it included the Co-operation Treaties, characterized by Yemen's participation in each of them. These were signed with certain European countries. The various visits of the President resulted with fruitful gains affecting the co-operation; in the aspects of commerce, economy, investment; between Yemen and these states. This is particularly due to the fact that such visits concentrated on attracting foreign investment and capitals into Yemen. Now, their positive indicators is beginning to show through the steady arrivals of delegations from international and European companies to Yemen for review of the opportunities, capabilities and available fields of investment. Some already approved in principle to participate in the investment field. In overall context, one could say what have been achieved during 1997 including the Parliamentarian Elections represented a point of embarking towards a new stage of fruitful work and achievement expected during the year 1998, and for the coming years within the area of completing the fundamental framework; construction of development; access in reaching big steps in the realistic average/ medium ratios of production, investment, service and development sectors; and transfer of GNP to high standards/ levels in order to lead to economic and social revival, and living prosperity and happiness for all individuals of the Yemeni nation, who are dreaming today to live within environment of security, stability, democracy and peace!. ___________________________________ Source: Al-Hawadeth Lebanese magazine Issue No. 2157 date 6/3/1998

Last changed: September 15, 2002