Central Bank of Yemen Decides to Liquidate Major Banks in Houthi-Controlled Areas
Yemen Monitor/Sana’a/Exclusive:
A source at the Central Bank of Yemen in the temporary capital Aden said at dawn on Wednesday that the bank governor has revoked the licenses of six private banks in Houthi-controlled areas, which means stopping the “SWIFT code” and stopping financial transfers through it from abroad.
The six banks are “Bank of Tadhamon, Bank of Yemen and Kuwait, Bank of Yemen and Bahrain Comprehensive, Bank of Al-Amal for Microfinance, Al-Karimi Islamic Bank for Microfinance, and the International Bank of Yemen” after they refused to transfer their headquarters from Sana’a to Aden.
According to the decision, branches of these banks in “areas controlled by the legitimate government” are exempt from its decision, and these branches will continue to operate until further notice.
It added: “The banks whose licenses have been revoked are obliged to take the necessary measures to implement the provisions of this decision, while taking into account the fulfillment of the rights of depositors.”
According to the source, who spoke to “Yemen Monitor” on condition of anonymity, the Central Bank will impose “a comprehensive liquidation, including the liquidation of assets.” Adding that international bodies have been informed of the decision.
The decision leads to the complete cessation of their activities outside the Houthi areas, and transforms them into small internal exchange offices unable to provide any banking services to individuals, companies and institutions.
The United Nations had said that the different directives issued by the central banks in Aden and Sana’a had led to noticeable disturbances in the financial and banking sectors, and indicated a significant escalation in retaliatory financial measures that affect the lives of Yemeni families and the already collapsing economy of the country.
