The Quartet threatens to impose sanctions on those obstructing reforms in Yemen amid a severe financial crisis.

Arab Sea Newspaper - Follow-ups

The Quad on Yemen, which includes the United States, Britain, Saudi Arabia, and the UAE, has informed the Presidential Leadership Council that it is about to impose international sanctions on any party that obstructs the implementation of the economic and financial reform program in the country, according to sources to Reuters. The sources indicated that the most prominent obstructors expected to be targeted by sanctions are the governors of the governorates who fail to supply revenues to the government and the central bank after the deadline. This step comes within the Quad's conditions for donor entities to resume financial support that has been suspended for years, which requires the implementation of comprehensive financial and institutional reforms, according to "Reuters." In contrast, the Yemeni economy is facing the worst financial and funding crisis since the start of the war in 2015, according to officials at the Central Bank of Yemen in Aden. The crisis has been exacerbated by the cessation of external support and grants and the delay in Gulf transfers for months, which has led to the non-payment of salaries to thousands of government employees in Aden and the areas under the control of the internationally recognized government. After the arrival of $90 million this week out of a Saudi support of $368 million, the government was able to disburse part of the overdue salaries, which helped to partially alleviate the repercussions of the crisis on citizens. However, living standards continue to deteriorate in the absence of sufficient revenues and the delay in governorates supporting their financial revenues. The World Bank warned that the absence of real progress towards peace makes the future of economic recovery uncertain and complex, noting in the "Yemen Economic Monitor" report that the success of the reform program represents an opportunity to revive the Yemeni economy and lay the foundation for sustainable growth, while real GDP is expected to decline by 1.5% during 2025, in a decline that threatens to exacerbate the food security crisis. The governorates under the legitimate authority in southern and eastern Yemen are witnessing difficult living conditions, as many employees have been forced to borrow to cover their basic needs, while others face threats of eviction from their homes due to their inability to pay rent. The Central Bank report estimates that the monthly wage and salary bill is about 83 billion riyals, while public expenditures for 2024 amount to about two trillion riyals, of which 60 to 70 percent was covered by the Saudi grant. In this context, the Presidential Leadership Council issued a comprehensive plan for economic, financial and administrative reforms, aimed at unifying public resources under the supervision of the central government and the central bank, and also aims to control revenues and ensure their transparent and regular disbursement. Experts point out that the continued delay in reforms and the withholding of revenues by the governorates exacerbate inflation and negatively affect public services, which increases public anger and threatens social and economic stability in Yemen.