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Houthi decision to confiscate the interests of the internal debt and the money of depositors in banks


The move allows militias to seize $3 billion

Despite the objections that extended to the ranks of the leadership and members of the coup government, the so-called “Houthi militia parliament” in Sana’a approved a draft law authorizing the confiscation of more than $3 billion, which is a group of domestic debt interests and depositors’ profits for past years, under the pretext of prohibiting transactions. usury, in a move the country has not known since the banks began operating more than half a century ago.

Houthi media and commercial sources in the coup-controlled areas stated that the so-called “House of Representatives” approved the draft law as it came from the government that no one recognizes, and ignored amendments proposed by the joint committee in the parliament, while 4 members of the parliament withdrew during the vote, for their opposition. The project, and warning them that it will lead to an economic catastrophe, and will open the door to the confiscation of the deposits of more than a million people.

The putschists ordered the project to be passed, and they rejected the letter of the Association of Banks, which confirmed its inability to pay the funds deposited with it, and that the branch of the “Central Bank” in Sana’a, the guarantor of these deposits, could not fulfill the payment, while the Minister of Finance and the governor of the “Central Bank” in the coup government refused to attend the council. To defend the project, the Presidency of the so-called “House of Representatives” said that the two men’s refusal to attend was due to their lack of understanding of the draft law, and for this reason they were replaced by the Minister of Legal Affairs in the coup government.

Sources in the Chamber of Commerce in Sana’a told Asharq Al-Awsat that the issuance of the law, in addition to eliminating the banking business entirely, aims to legitimize the Houthis’ seizure of depositors’ money and the benefits of external debt amounting to $3.3 billion, and stated that they are awaiting the legitimate government’s position on the matter. This step, where the funds of depositors and traders unlawfully confiscated.

The former Attorney General of the Houthi coup, Abdul Aziz Al-Baghdadi, had strongly criticized the draft law, and said that the most advanced countries that are economically, politically and militarily strong, whose institutions’ functions are based on scientific planning, consider banks as the backbone of the economy, and for this they are working to develop their work and support them, and if they are exposed For the risks of bankruptcy for any reason, it works to save it and supply it with liquidity from the state treasury. As for the most backward countries, unfortunately, they are not aware of this fact, and for this reason they not only work to neglect the banks, but also try to destroy them and abuse them and their workers.

Al-Baghdadi refuted the justifications put forward by the coup government, and said that it could be called a draft law that permitted eating the money of depositors unlawfully, in the name of fighting usury, and believed that the legal, legal, moral, economic, and political scandal.

He stated that “whoever reads the (strange) draft law, and compares Yemen’s economic conditions with any country in the world, wonders: Does the drafter of the project and whoever pushes it towards issuance want to convince people that the most economically and politically advanced countries in which banks carry out their financial and economic activities are the most remote from Religion, and that the most backward countries are the closest to religion, and is there more offense to religion than this message?!».

The International Sanctions Committee on Yemen stated in its latest report that it had received information indicating that the unrecognized coup government was going to issue a law prohibiting all interest on bank deposits and loans, in a unilateral measure that would lead to a complete division of the financial and banking system in the country.

The investigators of the Sanctions Committee confirmed that if the bill is passed, banks will not be able to obtain interest except through investments, but the current climate in the country hardly provides any opportunity for new business and investments.