Yemen financial and administrative reforms of ' Arabs' best'

SANA'A, June 04 (Saba) - Financial and administrative reform program
Yemen has been working on since 1995 are seen as of those most
effective reform programs in the Arab World, Governor of the Central
Bank of Yemen (CBY) said Thursday.

Concluding a training course on diagnosis and treatment of bad
debts, al-Samawi made it clear that the bad debts outnumbered the
fundamental capital and reserves before the bank implemented a
reform program in 2007. With the reform, the bad debt allocations
reached 60 percent by the end of 2007.

And 33 percent of the deposits in the country were pumped through
lending, with 50 percent going to finance trade, he said.

Yemen has a special program based on international standards to
strengthen its precautionary monitoring of the banks inside it, with
the Central Bank of Yemen periodically evaluating risks relying on
data prepared by the banks and those obtained during inspection.

The evaluation highlights risks the banks may face to prevent
unexpected effects on the financial sector in the country, he added.


Under law, the CBY has the right to blacklist those refuse to settle
their debts or insolvent of those whose debts are more than YER 5
million and notify banks not to deal with the blacklisted.

About 39 participants from the central banks of Yemen, Egypt, Sudan,
Saudi Arabia and Oman took part in the five-day course which
underlined exercised techniques for insolvent banks.

BA/FR