Statement by IMF Managing Director Christine Lagarde on the Republic of Yemen

Press Release No. 12/371
September 28, 2012

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement after a meeting with H.E. Abdu-Rabbu Al-Hadi, President of the Republic of Yemen, in Washington today:

“It was a pleasure to meet President Al-Hadi and his delegation. Yemen is undergoing unprecedented political transition that holds the promise of a more prosperous future for its people. At the same time, as the authorities recognize, the road to achieving this promise is fraught with extraordinary challenges.

“There are some encouraging indicators, including the stabilization of the exchange rate and foreign reserves in the past few months. However, economic activity remains weak and inflation in double digits notwithstanding some improvement from last year. Economic reforms to reorient public expenditure towards effective social and investment projects, and promote good governance in line with the Government’s Transitional Plan will be essential to bring about strong growth and reduce unemployment and poverty.

“I congratulated President Al-Hadi on the successful donors meetings in Riyadh and New York earlier this month to support these efforts. It is now important that donors deliver on their pledges and that the Yemeni authorities spend this assistance effectively. The IMF will remain in close dialogue with the authorities on how to continue to support their reforms, building on the stabilization progress achieved under the Rapid Credit Facility agreed last April,” Ms. Lagarde said.



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