MONETARY AND BANKING CONDITION IN YEMEN DISCUSSED

SANA'A, Oct.27 (Saba) - Governor of Central Bank (CBY) Ahmad
al-Samawi discussed here on Tuesday with the International Monetary
Fund (IMF)'s delegation the monetary and banking condition in Yemen
and the cooperation areas between Yemen and the fund.

The meeting dealt with a number of issues topped by preparing the
state general budget for 2010 and estimates of deficit size or
surplus, the monetary policy, exchange rates, cash reserve of CBY as
well as the Yemeni banking sector condition after the global
economic crisis.

In the meeting, al-Samawi affirmed the Yemeni banks were not
affected by the global economic crisis due to their limited
connection with the financial and banking markets in abroad.

Meanwhile, al-Samawi pointed out that 95 percent of Yemeni banks
adhered to raise their capitals to the levels required by CBY,
pointing the bank's plans to issue the Islamic bonds and what has
been achieved in this regard.

He reviewed the banking activity development, noting the level of
distinct relationship between Yemen and IMF as well as the fruitful
cooperation during the past years.

For here part, Head of the IMF delegation Todd Schneider praised the
steps have been made by Yemen to develop the monetary and banking
system.

She confirmed the fund would continue its cooperation with Yemen so
as to achieve more development especially at the level of monetary
and banking policy.

This meeting comes within the consultations framework of the 4th
Article of the IMF's Convention represented in the visit of the fund
mission to the IMF member countries to get acquainted with the
economic conditions.

BA