Economic official: Financial crisis in Aden government reaches dangerous levels

 ADEN, Nov. 02 (YPA) – The financial crisis within the coalition-backed Aden government has reached critical levels in southern areas of Yemen, an economic source familiar with the matter said on Saturday.

The source confirmed that the Aden-based Central Bank has exhausted all its options and was no longer able to provide the necessary liquidity to pay employee salaries or cover basic expenses.

It explained that the primary reason for the worsening liquidity shortage was the refusal to transfer revenues from institutions in the coalition-held southern provinces, and the continued imposition of levies and taxes for the benefit of armed faction leaders.

The government has lost the ability to manage its financial liquidity and disburse employee salaries, which have been suspended since last June. Furthermore, a financial deficit has prevented it from purchasing a fuel shipment to operate power plants in Aden, threatening a further deterioration in public services.

This collapsing economic situation has coincided with an internal conflict between the Prime Minister, Salem bin Breik, and the governor of the Aden Central Bank branch, Ahmed al-Ma’baqi, regarding the management of the financial portfolio and salary payments.

In a significant development, the source confirmed that the head of the Aden government would remain in the Saudi capital, Riyadh, refusing to return to Aden, stipulating that there must be a genuine and binding breakthrough in the matter of the delayed employee salaries.

The source noted that the rejection deepened existing disagreements and the prime minister’s attempts to pressure for securing the necessary financial resources before resuming his return to Aden.

This development comes as millions of employees await the fate of their delayed salaries, amid growing fears of an imminent collapse of the government’s financial capacity.

AA