International monetary allows Yemen to suspend the payment of the debt
English - Sunday 19 April 2020 الساعة 07:26 pm
Aden, Newsyemen, private:
The International Monetary Fund Board has agreed to suspend debt service payments to Yemen, for an initial period over the next 6 months, to help it cope with the fallout from the emerging Corona Virus pandemic.
The Central Bank of Yemen, from its headquarters in Aden, submitted an application to the International Monetary Fund early this month, to postpone the payment of debt installments to the fund for a period of 24 months, and transfer it to support the war-torn health sector in the country.
Yemen's debt owed to the International Monetary Fund amounts to about 211 million dollars, while Yemen's financial investments in the IMF portfolio exceed about one billion dollars, but the government does not announce its profits.
Yemen has stopped paying its domestic and foreign public debt receivables, and no new data has been issued on the amount of what has been paid, and the fines that were added to Yemen for non-payment of debt installments during 2016-2017.
According to the most recent data, the total public debt of Yemen exceeded 10 trillion and 400 billion riyals, including 6 trillion and 19 billion riyals of local debt, 4 trillion and 382 billion riyals of external debt at an exchange rate of 500 riyals to the dollar, but the high external public debt of Yemen came because of the Saudi deposit in 2018.
The rapid increase in the size and burdens of public debt appears to alarming levels, with the Central Bank in Sana'a and Aden stopping to pay the interest of the local public debt for years, which exposed the local banking sector to a package of challenges
