02 May 2013
Informed governmental sources said the Central Bank, apologized to the government, a few days ago over the issuance of new currency, and the Central Bank Governor, Ahmed Awadh Bin Hamam, threatened to resign if the government insisted on issuing this new currency.
It had been lately rumored that the Finance Minister acknowledged that the government had recently over drafted YR 54 billion.
Al-Ahali net said the Central Bank had suspended a number of checks for governmental institutions for over drafting their agreed line of credit extended to the government.
The Reconciliation Government (RG) had provided last year a budget which was marred with nonfeasance and dysfunctions.
It also presented a large budget in 2013 with a deficit of YR 650 billion, and resorted to over drafting by printing billions of Riyals for covering the deficit which it couldn't have financed through oil revenues which doesn't exceed 300 billion, if the oil pipeline is not targeted.
Saudi Arabia offered Yemen a grant of $ 200 million as well 3 million barrels of oil at the end of 2011, preventing a total collapse at that time.
The government is asking the International Monetary Fund for a loan of $ 20 million for the next three years.
The state treasury is facing difficult challenges for financing the huge fiscal deficit at a time when the government shifts between the alternatives of fiscal financial needs which may lead in the event of failure to the inability to provide expenditure in light of a deteriorating economic situation.
The Minister of Planning and International Cooperation, Dr. Mohammed al-Sa'di and Sakhr al-Wajih, Minister of Finance, returned last week from Washington after participating in the Ministerial meeting of Deauville initiative for supporting the Arab spring countries, which discussed the support level which the initiative had been providing since its launch in 2011, and the future work prospects.
The two ministers conducted negotiations with the International Monetary Fund, to obtain new credit facilities which may amount to $ 450 million for the next three years.
The Supreme Economic Council, chaired by Prime Minister Mohammed Salem Basundwah had recently heard a report by the Finance Minister Sakhr al-Wajih, over the challenges which the general finance is facing and the deficit indicators after the decline in general revenues because of the continuous disruptions of the raw oil flow due to saboteur actions.
The Economic Council had formed before a ministerial committee consisting of the Ministers of Finance, Planning, Communication and Information Technology, Fishery, Expatriates in addition to the Central Bank Governor and the General Cabinet Minister to study a proposed program for a comprehensive national reform, and to seek to control the budget's deficit and develop a national program for reforming the public finance and correct the deformities in salary scales in the military and civil sectors, through completing the biological fingerprint and picture program, the implementation of structural reforms to attract the national and foreign investments and the promotion of the economy to benefit from the promising opportunities of the investment sectors.
The council also heard a disastrous report presented by the Finance Minister, which revealed the economic crisis the government is suffering due to decline in revenues because of the crude oil disruptions "Marib- Ras Isa," due to the repeated sabotage actions and the huge impacts of these disruptions on the economy and the state's budget.
The last governmental reports pointed out that the public treasure encountered losses amounting to $ 3 billion and 166 million during the previous period due to attacks on oil and gas pipelines.
Informed governmental sources said the Central Bank, apologized to the government, a few days ago over the issuance of new currency, and the Central Bank Governor, Ahmed Awadh Bin Hamam, threatened to resign if the government insisted on issuing this new currency.
It had been lately rumored that the Finance Minister acknowledged that the government had recently over drafted YR 54 billion.
Al-Ahali net said the Central Bank had suspended a number of checks for governmental institutions for over drafting their agreed line of credit extended to the government.
The Reconciliation Government (RG) had provided last year a budget which was marred with nonfeasance and dysfunctions.
It also presented a large budget in 2013 with a deficit of YR 650 billion, and resorted to over drafting by printing billions of Riyals for covering the deficit which it couldn't have financed through oil revenues which doesn't exceed 300 billion, if the oil pipeline is not targeted.
Saudi Arabia offered Yemen a grant of $ 200 million as well 3 million barrels of oil at the end of 2011, preventing a total collapse at that time.
The government is asking the International Monetary Fund for a loan of $ 20 million for the next three years.
The state treasury is facing difficult challenges for financing the huge fiscal deficit at a time when the government shifts between the alternatives of fiscal financial needs which may lead in the event of failure to the inability to provide expenditure in light of a deteriorating economic situation.
The Minister of Planning and International Cooperation, Dr. Mohammed al-Sa'di and Sakhr al-Wajih, Minister of Finance, returned last week from Washington after participating in the Ministerial meeting of Deauville initiative for supporting the Arab spring countries, which discussed the support level which the initiative had been providing since its launch in 2011, and the future work prospects.
The two ministers conducted negotiations with the International Monetary Fund, to obtain new credit facilities which may amount to $ 450 million for the next three years.
The Supreme Economic Council, chaired by Prime Minister Mohammed Salem Basundwah had recently heard a report by the Finance Minister Sakhr al-Wajih, over the challenges which the general finance is facing and the deficit indicators after the decline in general revenues because of the continuous disruptions of the raw oil flow due to saboteur actions.
The Economic Council had formed before a ministerial committee consisting of the Ministers of Finance, Planning, Communication and Information Technology, Fishery, Expatriates in addition to the Central Bank Governor and the General Cabinet Minister to study a proposed program for a comprehensive national reform, and to seek to control the budget's deficit and develop a national program for reforming the public finance and correct the deformities in salary scales in the military and civil sectors, through completing the biological fingerprint and picture program, the implementation of structural reforms to attract the national and foreign investments and the promotion of the economy to benefit from the promising opportunities of the investment sectors.
The council also heard a disastrous report presented by the Finance Minister, which revealed the economic crisis the government is suffering due to decline in revenues because of the crude oil disruptions "Marib- Ras Isa," due to the repeated sabotage actions and the huge impacts of these disruptions on the economy and the state's budget.
The last governmental reports pointed out that the public treasure encountered losses amounting to $ 3 billion and 166 million during the previous period due to attacks on oil and gas pipelines.
© Yemen Observer 2013
