Yemen Monitor/Marib/Exclusive:
The EU Delegation to Yemen on Wednesday praised the resumption of the International Monetary Fund’s (IMF) participation in economic consultations with the Yemeni government, emphasizing that this achievement comes after a halt that lasted for over a decade.
In an official statement, the Delegation indicated that the success of the recent “Article IV” consultations is the “fruit of continuous efforts” in which the EU has worked closely with the Fund and international partners to achieve this important breakthrough on the economic track.
The EU affirmed its commitment to continue close coordination with the IMF to support the Yemeni government’s efforts aimed at achieving economic stability and enhancing international engagement on this file.
The Yemeni government had announced on October 8th the conclusion of the ten-day “Article IV” consultations with the Fund. In turn, the IMF explained in its statement that the resumption of these consultations comes as a result of “support from enhanced institutional capacity and the availability of better data,” which opens the door for deeper discussions on the path to economic recovery and the required fiscal and monetary policy reforms.
“Article IV Consultations” are an annual examination conducted between the Fund and member countries to assess the economic trajectory, discuss prospects and challenges, with the goal of preventing future financial crises.
Their resumption indicates increasing international recognition of the Yemeni government’s legitimacy and its institutional capacity to provide reliable economic data, a point also mentioned by the Fund itself.
The return of the Fund is also a necessary first step for the government to obtain future loans or credit facilities, and to re-attract development aid and foreign investment, after the war and currency division led to currency collapse and the deterioration of services.
