VOL. XL

No. 20

19-May-1997

YEMEN

Yemen Central Bank Lowers Interest Rates

As part of an IMF-induced reform program, the Yemen Central Bank has lowered theminimum interest rate on deposits to 14% and will allow banks to set interest rates onloans and offer foreign currency loans and facilities - regardless of their size - provided they gainapproval from the Yemeni Central Bank. Interest rates on deposits had previously been fixed at 20, 21,21.5 and 22% on 3-, 6-, 9-month and 1-year deposits...