Yemen’s warring rivals agree to de-escalate economic conflict: UN

By Anadolu staff

SANAA, Yemen (AA) – The UN envoy to Yemen, Hans Grundberg, announced Tuesday an agreement between the Yemeni government and the Houthi group to de-escalate their economic conflict.

He said the agreement included cancelling all recent decisions and procedures against banks by both rivals and refraining in the future from any similar procedures.

“Resuming Yemenia Airways’ flights between Sanaa and Jordan and increasing the number of flights to three daily flights, and operating flights to Cairo and India daily or as needed,” he added in a statement.

On July 10, the Central Bank of Yemen suspended licenses for six of the largest banks in the country, whose headquarters are located in the capital Sanaa, which is under Houthi control.

A financial dispute has recently emerged between the government and the Houthis regarding the revenue from Yemenia Airways, with both sides accusing each other of exploiting the company's profits.

The UN envoy said the two Yemeni sides requested the support of the United Nations in implementing their commitments.

He called on the two sides “to collaborate towards an economy that benefits all Yemenis and supports the implementation of a nationwide cease-fire and the resumption of an inclusive political process.”

Yemen is experiencing a severe financial crisis exacerbated by the halt in oil exports for the past year and a half, due to the repercussions of the conflict between the government and the Houthis, which began after Houthi rebels took control of Sanaa and several governorates at the end of 2014.

*Writing by Rania Abu Shamala