The International Monetary Fund has approved a USD369.8 million extended credit facility agreement to support Yemen’s economic reform program.
The three-year program is expected to boost the country’s goal of achieving high and sustained economic growth.
“The centerpiece of the 2010 program is a reorientation of fiscal policy that reins in unsustainable deficits, while allowing for higher social spending and safeguarding capital outlays,” according to IMF Deputy Managing Director Naoyuki Shinohara. “This will be complemented by tax policy reforms to increase the revenue base, including the full implementation of the general sales tax and adoption of a package of laws that abolishes most exemptions on tax and customs duties.”
IMF said it has made some USD52.8 million of the funding immediately available to Yemen.