A professor of international economics warns: the Yemeni government may reach bankruptcy
English - Sunday 19 February 2023 الساعة 06:40 pm
NewsYemen, wrote: Dr. Hussein Al-Maalasi:
All economic and financial indicators point to a dangerous path in the country, especially in (areas under the control of the internationally recognized government), where the government may move from economic failure to public financial bankruptcy within a few months if the situation and developments continue without any serious measures and policies being taken in the field to stop them. .
The reasons why we expect this are:
- The war and the political, economic and financial division it generated along with the division, difference and contradiction of financial and monetary policies.
- The production and export of oil stopped, thus stopping the most important financial resource for the government budget at all.
- The weakness of expatriate remittances through official channels, which is the second source of foreign currency after oil.
- The inability of the Central Bank of Aden to control resources and transfers of foreign currencies in the form of aid, aid, donations, loans, and others.
- Sovereign financial resources in riyals and foreign currencies remain outside the control of the state's financial and monetary apparatus.
- Poor collection of taxes and customs and their transfer to the accounts designated for them in the Central Bank.
- The spread of robbery and looting of financial resources across the country due to the weakness of the various state agencies.
- The authorities may reach the limit of the inability to pay wages and salaries to civilians and the military, the inability to find financial resources to provide public services such as electricity, water and sanitation, and the suspension of the operational budgets of state agencies, which leads to the spread of public chaos.
The continued preoccupation of the government and the Presidential Leadership Council with the profession of disagreements, negativity, and the political (indifference) approach, continuing abroad and not carrying out any official tasks, especially in resolving the aforementioned dilemmas, especially taking exceptional economic, military and financial measures to ensure the continuation of oil exports, limit corruption and exchange foreign and local currencies for its employees And other measures will lead the country to bankruptcy very well deserved.
Here, we like to emphasize the need to support the Central Bank's directives in serious financial and monetary measures to reduce the speed of rolling into bankruptcy.
The timid measures to curb the economic crisis indicate the lack of intention on the part of the leadership and its allies to alleviate the suffering of the population and the economy and drown the boat with those in it while ensuring their survival along with their interests.
In conclusion, the continuation of the economic situation on its current course without measures to stop the serious economic failure will lead the government to public financial bankruptcy and in a short time.
* Associate Professor of International Economics, Faculty of Economics and Political Science, Department of International Economics
