Rise in Yemen’s Commercial Bank Lending

CEIC Macro Watch: The decision of the Central Bank of Yemen to reduce the base interest rate has led to a drop in the 3-month weighted average repurchase rate from 19.42% in January 2013 to 16.13%, as of July 2013. The reduced cost of borrowing had an immediate impact on commercial banks’ lending abilities, with a credit expansion initiated. Total loans and advances, including classified loans, increased to 495.13 billion Yemeni Rial (YER) in July 2013, or by 24% year-on-year and 5.9% compared to the previous month. Much of the increase in lending went to the construction sector, with loans reaching YER 58.146 billion in July 2013 – a rise of 145% compared to the same month of the previous year. Loans and advances to the industry, and agriculture and fishing, sectors also surged in July 2013, growing by 12% and 33%, respectively, compared to July 2012. By Petar Chavdarov Google+ Author Profile - CEIC Analyst Discuss this post and many other topics in our LinkedIn Group (you must be a LinkedIn member to participate). Request a Free Trial Subscription. Back to Blog
4th November 2013 Rise in Yemen’s Commercial Bank Lending

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