Yemen's debt exceeded 10 trillion and 400 billion riyals
English - Thursday 10 October 2019 الساعة 10:18 pm
Aden – NewsYemen.net
Net public debt owed by Yemen in the second half of 2019 increased 41% to 10 trillion and 401 billion riyals, compared with 6 trillion and 563 billion riyals at the end of 2014.
The study of the macroeconomic developments of the Yemeni economy to the Ministry of Planning, that the net internal debt of Yemen rose from 3 trillion and 180 billion riyals in 2014, and by 44% to 6 trillion and 19 billion riyals in June 2019, accounting for 94 percent of GDP.
The study pointed out that Yemen's external public debt rose from $ 6.7 billion in 2014, by 22% to $ 8.7 billion and 77% in June 2019, due to the contraction of the value of GDP and the rise in the dollar exchange rate. Exchange of 500 riyals to the dollar 4 trillion and 382 billion riyals
Yemen's creditworthiness deteriorated further due to the difficulty of servicing the external public debt.However, the rise in Yemen's external public debt was due to Saudi Arabia's $ 2 billion deposit in 2018.
The war caused a sharp decline in the state's financial revenues, the reluctance of countries to provide any loans to Yemen, and the erosion of Yemen's foreign exchange reserves, and the conflicting parties resorted to cover the budget deficit through direct withdrawal from the Central Bank with its heads in Sana'a and Aden.
The fiscal crisis represents one of the most serious challenges facing the economic, social and institutional conditions in the country.One of the most serious repercussions is the continuation of the salary crisis for the largest part of the civil servants for more than two years, and the suspension of the payment of the local public debt service which exposed the banking sector to a severe liquidity crisis.
