On 13-15 June 2023, the OECD organised a seminar in Amman, Jordan, considering the priority areas and major needs for support to cash flow management and MSME’s access to finance in Yemen.

The access to finance event brought together key local stakeholders from central level financial institutions and a group of prominent banks and money exchangers, alongside international and regional experts.

The objective of the access to finance seminar was to provide a platform to discuss the relevant policies and necessary actions to help promote efficient funding, cash flow management and allocation strategies for MSMEs financing to support a sustainable and inclusive recovery.

More specifically, international experts shared knowledge and experience with representatives from the central-level financial Yemeni institutions and prominent active banks about:

• Cash flow management and allocation strategies of remittances and donor financing.
• Strategies and support measures to promote MSMEs’ lending under fragile conditions.
• Strategies to support financial innovations that will help address the needs of the population for a range of credit services.
• Strategies to expand digital credit to MSMEs and best risk management practices.

During the access to finance seminar, Yemi officials and other stakeholders discussed challenges, reforms and opportunities for strengthening sovereign cash flow management and improving MSME financing in Yemen.

During the access to finance seminar, the representatives of central-level Yemeni economic institutions discussed the following key priority needs to improve sovereign cash flow:

• Set up a technical system for government financial and accounting information.
• Build capacity for tax collection and expenditures.
• Build the capacity of employees working on the medium-term budget.
• Improve the institutional environment by enhancing its governance and transparency.
• Implement a Treasury Single Account (TSA) reform to consolidate all government cash resources into a single account.
• Foster cooperation with the central bank to ensure effective cash management and monetary policy implementation.
• Establish a centralized payment system at the MoF.
• Implement measures to promote the expansion of domestic financial markets.
• Establish a cash coordination committee involving the relevant bodies to oversee and coordinate an effective implementation of such cash management measures.

For the need to improve MSMEs’ access to credit in Yemen, the representatives of central-level Yemeni economic institutions mentioned the following key priority:

• Design financial products targeted to the characteristics and the needs of borrowers in the MSME sector and promote consumer protection.
• Support banks and MFIs for risk management and marketing strategies for MSMEs lending.
• Design loan guarantees and grants in targeted sectors to strengthen the resilience of financial intermediaries and borrowers’ credit quality.
• Improve financial education and understanding of business practices of both creditors and borrowers.
• Promote digitalisation of MSME finance to improve financial inclusion and support the development of MSMEs' businesses.