IMF to visit Yemen next week for funding talks

An International Monetary Fund mission will visit Yemen next week to discuss financing support for the country, a spokesperson for the global lender said on Wednesday, in a sign that international lenders are willing to engage with a new government.

The visit comes as Yemen prepares for elections on February 21 and following President Ali Abdullah Saleh's departure from the country on Sunday, making way for a power-sharing government following a year of demonstrations punctuated by warfare.

"An IMF mission will visit Sanaa next week to discuss providing budgetary and balance of payments support under the Rapid Credit Facility, the IMF's concessional window for countries that have experienced an economic/political shock," the spokesperson told Reuters.

The World Bank said this week it had lifted a funding freeze to Yemen and would reengage with the new government after closing its offices there in March 2011 due to political turmoil and unrest. Yemen country is the poorest country in the Arab world, with widespread poverty, corruption and soaring unemployment.

The IMF said in July last year it was ready to provide fresh financial support to Yemen when the political turmoil was over so that the government would be able to implement economic reforms.

The IMF approved a $370 million loan for Yemen in 2010 but just a fraction of the money was disbursed.