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With a $560mn loan from the IMF now secured, Yemen is hoping it could hold the key to unlocking further funds from donor countries which so far, have been slow to arrive.
After much discussion, Yemen last week reached an agreement with the IMF on a $560mn loan that it hopes will ease the pressure on a state budget deeply in the red. This follows a decision from the Yemeni government to cut subsidies on a range of petroleum products, as part of a renewed push to reform its much-maligned subsidy policy.
Subsidy reform has long been one of the IMF’s key recommendations for Yemen, one of the Middle East and North Africa’s (MENA) poorest nations, in an attempt to stave off economic collapse. In fact, it was one of the main prerequisites set out by the fund, before agreeing to finalize the loan that has been more than a year in the making. (CONTINUED - 1126 WORDS)