Attachments
Civil society organizations in Yemen are following up, with great concern, on the economic warfare currently unfolding between parties to the conflict, the Internationally Recognized Government (IRG) in Aden and Houthis authorities in Sana'a. Following failure to reach an agreement on extending and expanding the UN-led truce that ended on 2 October and therefore not being able to achieve the grounds for sustaining a long lasting peace agreement, both parties are pursuing extreme measures to suspend any financial dealings with commercial, Islamic and microfinance banks. On the 18th of December announcements have been made pertaining to the freezing of bank accounts for NGOs and exchange companies. These economic constraints will undoubtedly impact the delivery of critical aid provided by humanitarian organizations to 10.5 million people every month in all regions across Yemen and will risk hindering the implementation of aid projects to populations in need, regardless of where they are located geographically between the areas controlled by the parties of the conflict.
These measures counter the understanding of the fragility of the Yemeni economy, and the fact that 24 million Yemenis are in urgent need of humanitarian assistance. Warning signs and indicators pointing to the concerning macro-economic situation seem to be unheeded while almost 17 million people are currently facing severe food insecurity and millions of people remain internally displaced, lacking access to essential services. As a result of the conflict, only half of all health facilities are fully functional, and most of the water networks are barely in operation and Yemeni communities are suffering as a result.
These recent measures risk UN agencies, international and local NGOs, and humanitarian actors becoming incapable of serving those in crucial need. The humanitarian sector cannot deliver and save lives if it is to bear the consequences of the broader political and economic discords that are increasingly limiting the space in which banks, companies, exchange shops, and ordinary citizens could operate. The bottom line is that Yemeni communities in need will be the ones who will be suffering with the consequences being irreversible.
We, the undersigned Yemeni Civil Society Organizations, urge the UN Special Envoy, the Quad and Troika, and the European Union to
- Immediately engage in serious talks on the economy and the ensuing impact of the measures being put in place. Before anything else, these talks must pay attention to the indicators that warn of the seriousness of this situation and to prepare for the worst possible scenario – the total collapse of the Yemeni economy - with the aim of protecting the population in general and the vulnerable groups in society in particular.
We appeal to the United Nations and donor countries to;
- urge the parties of the conflict to take concrete steps to enable humanitarian organizations to continue providing life-saving assistance to millions of people in need across Yemen and to facilitate full, safe, and unhindered aid access to all people in need.
Civil society organizations warn of the danger of such hasty measures against commercial and Islamic banks, microfinance, and Yemeni exchange companies on the humanitarian response in Yemen and the lives and livelihoods of Yemenis, impeding the operations of humanitarian agencies, and deepening the economic crisis in general. It further challenges NGOs’ dealing with these measures in impartiality and equality, in respecting their independence, and in supporting their objectives.
Civil society organizations express their willingness to closely work with Yemeni Banks Association, Money exchange unions, and the General Federation of Yemeni Chambers Commerce, to form a joint committee to hold talks with the management of the two banks in Aden and Sana’a to create a neutral space that enables the entities operating in the financial sector to perform their work.
We hope that the World Bank and the International Monetary Fund will extend their support to the Yemeni financial and banking sector, and take push for concrete steps to
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Unify the senior management of the Central Bank of Yemen, to strengthen coordination on the monetary policies set by the central banks,
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work to persuade the parties, the management of the Central Bank to stop illegal interference in the internal affairs of banks,
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respect the independence and impartiality of the banking sector,
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remove obstacles and restrictions imposed and enable it to provide the necessary financial services to the institutions of the national economy while ensuring impartiality, unaffected from all influence of the conflict.
In conclusion, the parties to the conflict in Yemen must end the current escalation, commit to extending and expanding the Truce, end the battle for control between Yemeni banks and exchange companies and to act responsibly before it is too late to prevent a total collapse of the Yemeni economy. The international community must intervene urgently to address the economic impasse in Yemen and support the Yemeni people by meeting their urgent needs while enabling them to rebuild their lives through longer-term recovery.
Signatories:
- Nabd Development and Evolution Organization
- Abs Development Organization for Woman & Child
- Peace and Building Foundation
- Democracy School
- Soul For Development
- Yemen Centre for the Study of Human Rights
- Light Foundation
- Eayha'a Foundation for calm and social Peace
- Qudrah organization
- Sada Foundation for Building &Development
- Social Development Hodeidah Girls Foundation
- Wahg Al-hyat Foundation
- Advance Foundation For Development
- Tamdeen Youth Foundation
- Make Hope for Development and Relief (MHDR)
- Al-Aman Organization For Blind Women Care
- Hajjah Cultural Foundation
- Future Social Charity Association
- Wa'am Foundation
- Tomorrow Foundation for Sustainable Development and Humanitarian Relief
- Al-Shafaqa Institution for Renal failure &Cancer Patients Care
- Life Makers Meeting Place Organization
- Knoz Yemen organization humanity development
- White Hands Association for Women's Development
- Medical Mercy Foundation
- Rifa Foundation for Community and Human Development
- Hemmat Shabab Foundation for Development
- Khadija Foundation for Development
- National Corporation for Development and Health Care
- Peace School Organization
- Youth Council Foundation
- Ramz Development Foundation
- Yemeni Development Network For NGO's
- Future Makers Association
- Resalty Foundation for Women Development
- Musahmah Orgnization for Human Development
- Civil Society Forum
- Lana Foundation for societal development
- Field Medical Foundation
- Badia Social Development Association
- Care and Rehabilitation of the Disabled Association
- Human Aid Organization
- Angela for Development and Humanitarian Response