The Paris Club of International Lenders announced on Friday that its agreement to extend Yemen’s debt suspension has prompted the club to move frequently with crisis borrowers.
The club pointed out that Yemen must be committed to obtaining the loan service transaction from all other official creditors in accordance with the agreed terms and its appendices.
How much is Yemen owed to the Paris Club?
Yemen’s debt to the club has reached $ 1.683 billion by the end of December 2020, according to the latest data released on the Paris Club platform by “Al-Ain News”.
This figure is small compared to the debt of other countries.
According to the platform, members of the Paris Club participating in the debt restructuring of the Republic of Yemen include Belgium, Denmark, France, Germany, Italy, Japan, the Netherlands, the Republic of Korea, the Russian Federation, Spain, the Republic of Korea, the United Kingdom and the United States.
What is the Paris Club?
The Paris Club was founded in 1956. It is an informal group of official lenders whose role is to find integrated and sustainable solutions to the payment difficulties faced by borrowing countries.
The Paris Club currently has 22 permanent members providing loans, and if certain conditions are met, other lending countries can participate in negotiations on a case-by-case basis.
Representatives of international financial institutions or other countries may be invited to attend club meetings. The Paris Club loan is divided into official growth aid and non-growth loan.
Mine Abdul-Malik, the head of the internationally recognized Yemeni government, confirmed at the end of last month that Saudi Arabia’s deposit to the central bank in Aden would be forthcoming to save the economy and prevent currency devaluation, but that has not happened to date.
Observers and economists attributed the delay to Saudi support as the two sides continued to discuss terms and procedures for using the new deposit and terms and means for correcting the imbalances in the payment of pre-Yemeni Saudi deposits in 2018 and 2018. Billion.
The Yemeni riyal continued to depreciate against the dollar and foreign currencies in the coastal city of Aden after months of sharp decline and its sharp fall, after a significant improvement in the value of the Yemeni currency over the past month. Always level.
Amid fears of a wave of high prices and rising food prices in Aden and the southern governorates, the dollar hit a one-month low of more than 1,200 riyals.
Traders and dealers of exchanges in Aden said that the Yemeni rial continues to depreciate against the dollar and foreign currencies, despite recent tightening measures in the banking sector at the Central Bank of Yemen in Aden.
“Coffee trailblazer. Social media ninja. Unapologetic web guru. Friendly music fan. Alcohol fanatic.”