Saudi Arabia has suspended most of its financial aid to Yemen in “clear indication of its dissatisfaction with the growing political power of Shi’ite Houthi fighters friendly with Riyadh’s regional rival, Iran,” according to a Reuters report.
“Soon after Houthi fighters took over the capital Sanaa in September, Saudi Arabia promptly suspended much of that aid, concerned the rebels will use their military muscle to dominate domestic politics and project Iran’s influence.”
However, an an interview with Reuters, Yemen’s central bank governor said that Saudi Arabia “has not asked Yemen for an early repayment of a $1 billion loan and Houthi fighters occupying Yemen’s central bank are not interfering in its operations.”
Mohammed Bin Humam, in emailed comments to Reuters, said “Our brothers in the Kingdom of Saudi Arabia have not asked for early repayment and we believe they will not…Our strong brotherly ties are above all agreements!”
Saudi suspension of aid to Yemen is costly for the small impoverished country along the Kingdom’s southern border, but Reuters notes that fuel subsidy cuts and funding from the IMF next year, “which agreed in July to provide a three-year, $553 million loan based on the government’s economic reform pledges,” will make the cuts from Riyadh more bearable.
