The international rating agency, "Capital Intelligence" announce raising the classification of Yemen in 2008 despite the challenges of the global financial crisis
The international rating agency, "Capital Intelligence" which located in Cyprus, with branches in various parts of the world announce raising the classification of Yemen in 2008 despite the challenges of the global financial crisis.
The classification of rose from a negative "B -" in November 2006 to a "B" in December 2008, as the classification of foreign currency has risen from "C" during the same period. the indicator of good credit represent the success of the plans and programs of the Central Bank in implementing the electoral program of President Ali Abdullah Saleh, which focuses on the reform of the banking sector and its role in attracting savings and encourage investment financing to achieve continuing development and growth, and enhance implementation of efficient monetary policy to maintain monetary stability, and strengthening the role of financial intermediation of the financial sector to encourage savings among the citizens.
The new classification confirms that despite the global financial crisis, Yemen is still in a good position due to an improvement in the transparency through the periodic issuing of the financial data, as well as to the accumulation of international reserves, exchange rate stability.
The international recognition reflects the continuing efforts of the Central Bank of Yemen in the early forecast for the global financial crisis by taking many steps in order to protect the banking system from falling into a crisis of liquidity and credit risks. In addition to some procedure he put in practice such as the exemption from compulsory reserve to the documentary credits.
The Central Bank has succeeded in the implementation of international standards for the banking sector, .including the adequacy of the Yemeni capital, which amounted to 12% noted that the Basel (1) determined it by the rate of 8%. in addation to that ;The central bank assert on the criteria for granting credit and avoiding taking any potential risks by oblige banks to do allocation for debt , defining accounting firms and establishing specialized departments for internal control in every local bank and the periodic issuing of the list of defaulters, in addition to activating every kind of control by the Central Bank.