The Central Bank of Abyan is heading for bankruptcy and is borrowing to provide liquidity
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Sources confirmed yesterday that the Central Bank, Abyan Governorate Branch, was unable to provide cash liquidity to pay the salaries of some utilities, and was forced to borrow from private banks and exchange companies in light of its inability to provide cash liquidity.
A number of government office accountants confirmed that “the Central Bank of Abyan was unable to disburse cash from Chapter Two to some government facilities in light of the administrative and financial confusion it is suffering from after its administration was unable to provide cash liquidity.” According to "The Days"
They pointed out that “the Central Bank, Abyan branch, has been disbursing cash in the form of only 200 riyals for eight months, and this is considered confusion and a clear inability, as its management did not move to find appropriate solutions to this confused situation.”
They wondered about the proceeds of financial levies that the local authority in the governorate supplies to the bank: “Where do they go, where are they supplied, to what account, and in total (one billion Yemeni riyals per month), while the central bank’s treasury is devoid of cash liquidity.”