IMF: Yemeni government needs additional donor funding and boost revenue collection

IMF: Yemeni government needs additional donor funding and boost revenue collection

The International Monetary Fund team said Yemeni government has made significant progress in rebuilding its technical staff and improving data collection and analysis, enabling it to take the important step, including preparing the 2019 national budget.

The IMF team, in a statement on the occasion of the conclusion of its meetings with the delegations of the Yemeni government and the Central Bank of Yemen held in Amman, Jordan, said that the government has resumed the process of paying dues to a large number of workers and all retirees in areas beyond its control. It was a welcome step towards restoring the purchasing power of families."

The statement stressed the need for the Yemeni government to "obtain additional donor funding, strengthen revenue collection, and implement further measures to prioritize government spending" in order to maintain the stability and recovery of the economy.

"The overcoming of institutional fragmentation and coordinating the policy implementation process in a consistent manner throughout Yemen is of great importance," the statement said, adding that this was based on "recent progress in strengthening administrative capacity."

The head of the IMF mission, Kochi Maathai, said the conflict in Yemen has paralyzed the country's economy and pushed it into a humanitarian crisis.

Maathai noted that the central bank and public institutions have been fragmented, "which has contributed, among other problems, to difficulties in coordinating on the financing of imports, and in the non-payment of salaries to many members of the civil service system, in areas not under government control."

He stressed on the need for additional funding "for two purposes: to avoid the central bank's financing of the deficit, and to support basic imports," Maathai said.

He explained that the IMF is "deeply concerned about the humanitarian and economic costs of this conflict, and is working with donors to quickly provide funding for basic imports, supporting the payment of public sector workers' wages and providing social assistance," urging the government to take additional steps in this direction.

During the period 10-18 July, Amman hosted intensive meetings of the IMF team headed by Kochi Maathai, a Yemeni delegation whose members included representatives of the government headed by Ahmed al-Fadhli, Minister of Finance, Salem Bin Brik, Deputy Minister of Finance, and Dr. Mohammed Al-Haweri, Undersecretary of the Ministry of Planning and Cooperation. Adnan Abdul Jabbar, undersecretary of the Ministry of Civil Service, Awad Hamran, head of the tax authority, Mohammed Al-Al-Duhni, undersecretary of the Customs Authority, and Alaa Qassem, executive director of the donors' body, as well as directors from the Ministry of Finance, the Oil Ministry and the Central Bureau of Statistics.

The delegation also included representatives of the Central Bank of Yemen headed by Governor Hafiz Mu'yad and agents of the competent sectors of the Central Bank, as well as participants from the private sector and Yemeni businessmen.

The meetings discussed the latest economic developments in Yemen and monetary policies, and ways to address imbalances and save the Yemeni economy from the recession and collapse caused by five years of war.


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