Yemen Eco – Special follow up
The Yemen Central Bank in Aden said that the volume of the public internal debt has been increased at 1.575 trillion rails during the current year, by the government’s resort to internal borrowing to finance the budget deficit.
In accordance with a report issued by the Central Bank in Aden on the financial and cash indicators during the period January-June 2023, was briefed by “Yemen Eco “that the internal public debt has been increased at 1.575 trillion rails to reach at the end of June 2023 to 5.02 trillion rails in comparison with 3.449 trillion rails during the same period of the year 2022.
The direct borrowing from the Central Bank forms the fundamental source for financing the internal public debt amounting to 4.886 trillion rails with percentage of 97.3% of the total internal public debt, while the tools of the local debt forms the second source for the internal public debt at the value of 137.6 billion riyals, with rate of contribution amounting to 2.7% according to the report.
On September 11, the Yemeni government restored to local debt instruments by offering government bonds for (one year) at the auction with an initial value 20 billion riyals, at a rate of 18%, according to what the central bank announced in Aden on its official website.
The bank mentioned in it announcement that was monitored by “Yemen Eco” that the auction will be conducted in competitive manner in accordance with the submitted interest rates, whereas every participant could present more than one bidding with various rates, whereas the participants could present in this auction more than one bidding for their own interest or on behalf of their agents. And that the bank share should not exceed the participating side 20% of the auction value. Stressing that the minimum value of bid submitted by each participant is 100 million Yemeni riyals and its duplications, indicating that the normal value of one bond is equal to one million riyals.