The Arab Monetary Fund (AMF) signed Monday a Saudi-brokered $1 billion deal with the Yemeni government in Riyadh to implement reforms to strengthen the war-torn country's economic, financial, and monetary stability, according to Saudi Press Agency (SPA).
The reform program, led by the AMF as a technical body during the next three years, will support the country's public finances and external position as well as the development of the Yemeni financial and banking sector while enabling the private sector to be more involved in the process of sustainable economic growth, Saudi's state-run news agency said, citing Saudi Minister of Finance Mohammed bin Abdullah Al-Jadaan.
Further, the program aims to strengthen national institutions, improve governance and transparency, expand and diversify the productive base, promote comprehensive and sustainable economic growth, and create more jobs for Yemenis to reduce unemployment and poverty.
The Yemeni government's financial sector reform priorities include building up its public resources, enhancing financial inclusion for youth in rural areas, rationalizing spending, allocating funds to urgent needs, and restoring critical infrastructure in the electricity, water, and road sectors in a way that establishes the sustainability of the financial situation and boosts confidence in the national economy.
The development of the private sector to drive comprehensive and sustainable economic growth is also among the reform priorities, paving the way for further integration into the global economy, the flow of foreign investments, and international partnerships
