The Houthi militia is covering up the bankruptcy of banks in Sana'a
English - Tuesday 28 September 2021 الساعة 05:37 pm
Aden NewsYemen, Exclusive:
A senior banking source revealed that the Houthi militia is covering up the announcement of the bankruptcy of the "Yemen and Gulf Bank", stressing that the Central Bank of Yemen in Sana'a formed a committee to seize the bank after its bankruptcy.
The source added that the Houthi militia exploited its control over the Central Bank in Sana'a and its applicable laws, according to which it revoked all the powers of the Board of Directors and the Executive Management of the Yemen Gulf Bank, which devolved to the Houthi seizure committee.
The Houthi militia prevents commercial and Islamic banks from using their balances in the central bank, and is reluctant to pay their outstanding debts in cash for the value of the banks' treasury bills.
The source explained that the Houthi militia's seizure of the Yemen Gulf Bank is a loss and looting of depositors' money, and all its assets, cash flows, dues and legal reserves with the Central Bank.
Banking sources said that many banks in the capital, Sana'a, are collapsed and almost closed, due to their inability to fulfill their obligations and carry out their basic functions, as a result of preventing the Central Bank in Sana'a from using their balances.
The sources confirmed the bankruptcy of CAC Islamic Bank, the failure of the Islamic Bank of Yemen, and the National Bank branch in Sana'a almost closed, but the Houthi militia is covering up the announcement of the bankruptcy of these banks, with the aim of drawing an image among the people and the international community of the cohesion of the economy and the state.
The Houthi militia imposes restrictions and measures on the banking sector that have limited its activity, in addition to levies and profit sharing, which has led banks to bankruptcy, and the role of the banking system has declined in financing development and generating employment and income opportunities in society.
The Central Bank of Aden had issued a directive obligating banks to move their headquarters from Sanaa to the temporary capital, Aden, which the 16 banks that are headquartered in the capital, Sana'a, did not respond to, while the National Bank and Al-Qutaybi Islamic Bank have their main centers in Aden.
