The IMF has approved a $93.75m loan to Yemen to support its economic recovery programme.

The loan was approved by the IMF’s Executive Board on 4 April and will be provided under its Rapid Credit Facility (RCF) programme.

The political unrest that swept through Yemen in 2011, resulting in the eventual resignation of President Ali Abdullah Saleh in February this year, led to its gross domestic product (GDP) shrinking by 2.5 per cent in 2011. A lack of bank financing and damage to key oil pipelines has further hampered its economy.

On 25 February, Abed Rabbo Mansour Hadi was appointed as Yemen’s new president after an election was held on 21 February. The election was part of a US-backed Gulf transfer deal that led to Saleh stepping down from power in November last year in exchange for full immunity from prosecution over the alleged killing of protesters.