Local Editor
Capital Intelligence Ratings (CI), has suspended the credit ratings of the International Bank of Yemen (IBY), based in Sana’a, Yemen, due to both the absence of financial information and the current extremely challenging operating environment in Yemen.
At the time of suspension, IBY’s Financial Strength Rating was ‘B-’ and the Outlook ‘Negative’. IBY’s Long- and Short-Term, Foreign Currency Ratings were both ‘C’ with a ‘Negative’ outlook. The Support Rating was ‘4’. The Ratings were last downgraded in April 2016.
There remains a protracted and devastating civil war in Yemen. Conditions deteriorated in 2016 and further to date in 2017, in humanitarian terms, as well as financially and economically. In September 2016, resigned President Hadi issued a decree to replace the then governor of the Central Bank of Yemen (CBY) and relocate its headquarters from Sana’a to Aden. Up until this relocation, the CBY was one of the few remaining institutions operating effectively, to the extent possible, since the start of the conflict.
However, the CBY’s independence and effectiveness is now questionable. The loss of a proper functioning Central Bank brings with it many questions, particularly the ability to manage basic economic stabilization. The CBY previously had greater access to foreign currency reserves to help finance operations and a more neutral stance. This is now no longer the case.
IBY was established in January 1979 by a Presidential decree and its shareholder base is dispersed quite widely. At end 2015 total assets amounted to YER446 billion ($2.07 billion).
Source: News Agencies, Edited by Website Team
