The Houthi militia issues a decision obligating banks to renew licenses
English - Tuesday 20 June 2023 الساعة 03:02 pm
Sana'a, NewsYemen, exclusive:
A banking source in Sana'a revealed that the Houthi militia issued a decision obligating banks to renew licenses, and this decision is in line with the systematic looting of money and assets by the Houthi militia, Iran's arm.
The source, who occupies a high position in a bank in Sana'a, told "NewsYemen" that the Houthi militia sent them a circular containing a decision requiring them to renew the license and pay the renewal fees.
He added that the Houthi militia's decision, which it circulated to all banks in Sana'a, is an innovation to plunder the rest of the bank's money and is contrary to the Central Bank of Yemen law, the banking law, and the microfinance law, all of which do not oblige banks to renew the license.
According to the Commercial Banks Law, the license granted under paragraph (1) of Article (5) of the Banking Law is permanently displayed in a prominent place at the main headquarters of the bank’s business in the Republic, and copies of the license are displayed in the same way in all the bank’s branches and offices in the Republic.
The source explained that this decision would enable the Houthi militia to loot tens of billions of money from 17 banks headquartered in Sana'a, under the name of renewing licenses, stressing that the Houthi militia issues laws and decisions to destroy Yemeni banks in favor of exchange companies that manage their money.
The House of Representatives, which is controlled by the Houthis in Sana'a, approved, on March 21, a Houthi law to freeze the investments of commercial banks in government debt securities (Treasury bills), with the aim of confiscating the profits of commercial banks and canceling a large part of the internal government debt owed to banks, under the name Cessation of usurious transactions.
The Governor of the Central Bank of Yemen, Aden, Ahmed Al-Maabqi, said in his recent statements that the Houthi law "preventing usurious transactions" eliminates the banking sector and confiscates citizens' property.
He explained that the Houthi law transferred one trillion and 800 billion riyals, equivalent to 8 billion dollars at the 2014 exchange rate, which is the money of depositors in banks, into current balances that the citizen cannot withdraw, stressing that this law sends millions of Yemenis below the poverty line, and complicates the treatment of Yemeni banks with the world.
At the same time, however, he warned banks against any identification with the Houthi measures, and whoever implements them will expose himself to penalties, stressing that the Central Bank will not allow the application of the so-called Houthi usurious transactions law, and that the laws applicable to the sector are the laws of the Republic of Yemen.
The assets held in the Houthi Central Bank in Sana'a amounted to 2.8 trillion riyals, according to 2014 data, but when the Houthi militia overthrew Sana'a by force of arms, the valuation of these assets in dollars dropped from $13 billion at the time to $5 billion.
On April 30, the Houthi militia issued a decision through the Central Bank in Sana'a, which is under its control, to raise the capital of exchange companies and facilities, and stipulated that 25% of the value of the capital should be deposited as a cash guarantee within a period of 8 months.
The Houthi militia derives its influence over the banking sector from the fact that most banks are still headquartered in Sana'a and conduct most of their business in areas controlled by the militia.
