Yemeni child to be born in debt $ 1,000, Public Debt exceeds $ 35 billion
English - Sunday 23 December 2018 الساعة 05:10 pm
Aden – NewsYemen.net
Heavy Debts awaits Yemen and its people in the coming years, not the files of reconstruction and the re-gathering the social fabric, and not compensation for the destroyed gains by the war, but the debt bill that has doubled over the past three years.
The financial data obtained by Newsyemen that the armed Houthi militias funded the budget deficit by borrowing from the Central Bank of Yemen (CBY) in the Capital Sana'a, overdraft without cover, amounting to $ 8 billion, during the period from January 2015 to June 2017.
The financial report issued by the unrecognized Houthi de-facto government, and presented to Parliament, that the total public debt rose from Y.R 4,737 trillion, equivalent to $ 22.1 billion in 2014 to Y.R 5,564 trillion, equivalent to 0$ 25.9 billion in 2015, and exceeded Y.R 7 trillion and Y.R 145 Billion until June 2017, equivalent to $ 30 billion dollars.
Domestic banks are reluctant to invest in treasury bills, with 65% of their total assets being government debt that the central bank refrains from paying, while the Houthi government's debt to the central bank increased to 35% of the total domestic debt.
The Hadi's government in the interim Aden province has resorted print new currencies to cover the budget deficit of 80 percent. The total amount of cash issued was Y.R 990 billion, $ 2 billion.
According to the International Monetary Fund (IMF) and the Central Bank of Yemen (CBY), both local and foreign debt have reached the highest level in Yemen's history.
The total debt has exceeded $ 35 billion, including 9 billion foreign debt, including the Saudi deposit.
As the declining of the Yemeni economy (GDP) returns from Y.R 31 billion in 2014 to Y.R 18 billion in 2017, and the increasing the size of debt, every citizen and every Yemeni child will bear, debtor either inside or outside the country as least $ 1,000.
The arrears accumulated since 2015 are estimated at about $ 3 billion by the end of 2016. This amount includes the value of government obligations, unpaid salaries and arrears of debt.
The official data at the Ministry of Finance confirm that the average repayment of annual foreign loan installments is about $ 208 million, in addition to the payment of the first Saudi deposits of $ 1 billion that were handed over to Yemen in 2012.
The first installment was due in early 2016, estimated at $ 250 million.
