The IMF allows Yemen to suspend payment of its debts for an additional 6 months
English - Tuesday 06 April 2021 الساعة 04:47 pm
Aden, NewsYemen:
The International Monetary Fund has extended the suspension of debt service payments to Yemen for an additional 6 months, in order to help it cope with the repercussions of the emerging coronavirus pandemic.
The International Monetary Fund announced, on Monday, the extension of urgent aid to 28 of the world's poorest countries, including Yemen, to allow them to reduce their debts and deal better with the impact of the Covid-19 pandemic.
The Washington-based foundation said in a statement on Monday that its board of directors agreed on April 1 to extend the mechanism until October 15.
In April 2020, at the start of the pandemic, the International Monetary Fund launched a debt relief mechanism within the framework of the "Disaster Containment and Debt Relief Trust". The mechanism included Yemen at the time for a period of six months.
The trust fund provides debt relief in the form of grants to the poorest and most vulnerable countries affected by a natural disaster or a public health crisis with tragic repercussions.
The goal, according to the International Monetary Fund, is to "free up financial resources" to allocate them to health, social and economic support to mitigate the impact of the epidemic.
Yemen's debt owed to the International Monetary Fund is about $ 211 million, while Yemen’s financial investments in the IMF’s portfolio exceed $ 1 billion, but the government does not announce its profits.
Yemen has stopped paying the domestic and foreign public debt dues, and no new data has been issued on the size of what has been paid, and the fines that were added to Yemen for non-payment of debt installments during the years 2016-2017.
