Riyadh (UNA/SPA) - The Kingdom of Saudi Arabia has provided new economic support to Yemen worth 500 million US dollars, to strengthen the Yemeni government budget, support the Central Bank of Yemen, and out of the Kingdom's keenness to achieve stability and development for the brotherly Yemeni people.
The new Saudi support includes a $300 million deposit in the Central Bank of Yemen, to improve the economic and financial situation, and $200 million to support addressing the Yemeni budget deficit out of a total of $1.2 billion, through the Saudi Program for the Development and Reconstruction of Yemen, to enhance food security in Yemen, support salaries, wages and operating expenses, and assist the government in implementing the economic reform program.
The economic support aims to establish the foundations of economic, financial and monetary stability in the Republic of Yemen, enhance the public finance situation, develop and build the capacities of government institutions, enhance their governance and transparency, and enable the private sector to drive sustainable economic growth and create job opportunities, which will lead to placing the national economy on a more sustainable path and advancing the process of economic and social development.
Previous Saudi deposits had a positive impact on raising foreign exchange reserves in the Central Bank of Yemen, decreasing exchange rates, and growing GDP. They also contributed to reducing fuel and diesel prices, and decreasing the prices of imported food commodities.
It also contributed to covering the import of basic food commodities (wheat grains, wheat flour, rice, milk, cooking oil, and sugar), strengthening the Central Bank’s foreign exchange reserves, enhancing the stability of the local currency, and lowering fuel and diesel prices.
While Saudi grants have had a positive impact in enhancing economic and social development, providing operating expenses, and supporting the national economy, they have also contributed to reducing the economic deterioration by increasing foreign exchange and raising the level of confidence in the Central Bank of Yemen, and increasing financial transfers and foreign aid, which has strengthened the balance of income and transfers in Yemen.
It played a role in stimulating economic growth, mitigating the impact of inflation, and enhancing the government’s ability to cover expenses from salaries and wages, which contributed to reducing the budget deficit, improving the stability of the financial system, and reducing reliance on borrowing to finance the budget deficit.
It has enabled the improvement of the performance of the most important sectors, such as the health sector, by covering the costs of medicines needed for chronic diseases, in addition to expenses related to treating cancer patients, in addition to supporting education and other key sectors, and covering the provision of petroleum derivatives to generate electricity.
The Kingdom had provided grants for petroleum derivatives to operate 80 power plants in all Yemeni governorates, which contributed to stimulating the Yemeni economy, stimulating economic growth, and raising the efficiency of vital, productive, and service sectors in Yemen.
The Kingdom, through the Saudi Program for the Development and Reconstruction of Yemen, has also provided 263 development projects and initiatives implemented by the program in various Yemeni governorates, serving the Yemeni brothers in 8 basic and vital sectors: education, health, water, energy, transportation, agriculture and fisheries, developing and supporting the capabilities of the Yemeni government, and development programs.
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