Washington: The International Monetary Fund on Tuesday approved a $553 million (Dh2.03 billion) loan for Yemen to help the struggling country stabilise its finances and boost growth.
The three-year loan aims to support the Yemen government in implementing a package of reforms amid a challenging political and security environment, with the government facing attacks by an Al Qaida affiliate and a rebellion by minority Zaidis.
The reforms are also focused on the politically difficult plan to eliminate large fuel subsidies in order to reduce a drain on the state budget.
“A first step in this direction has already taken place and will be complemented by well targeted social transfers to the poor,” the IMF said.
“Additional fiscal measures will aim at reducing the budget deficit over the medium term by reforming the civil service and improving tax compliance.”
