Trade Policy

Yemen’s overall balance of payments in 2006 realized a surplus of USD 1.25 billion, primarily as a result of rising world oil prices. Yemen’s bilateral and multilateral debt picture continues to improve. Debt to Russia was reduced dramatically with Russia’s accession to the Paris Club. Additionally, in 2000 the World Bank financed a commercial debt reduction program. In June 2001, the Paris Club members agreed to reschedule Yemen's stock of debt as Yemeni officials committed to continuing the country's economic reform program. As a result, Yemen's outstanding debt for 2007, after rescheduling, is approximately USD 5.842 billion, a level considered sustainable by international financial institutions.