UN Reports Agreement Between Yemeni Government and Houthis on Financial Matters

The United Nations states that the internationally recognized Yemeni government and Iranian-backed Houthi rebels have agreed to reduce financial tensions, including the lifting of bilateral banking sanctions. The UN representative in Yemen announced on Tuesday, July 23, that the parties have agreed to lift banking sanctions against each other and to refrain from such actions in the future, with mediation from Saudi Arabia. Since March 2015, shortly after seizing large parts of Yemen, the Houthis have been engaged in military conflict with a Saudi-led coalition, and both the official government and the Houthi rebels are facing financial crises. In December of last year, the official government and the Houthis agreed to end the war and pursue a political approach with UN mediation. However, the Houthis' attacks on international ships in the Red Sea since November, under the pretext of supporting Palestinians in the Gaza conflict, have delayed peace negotiations with the Yemeni government. The UN office in Yemen stated that on Monday, the Yemeni government and Houthis informed Hans Grundberg, the UN representative for Yemen, that they had agreed to take measures to reduce tensions. Mr. Grundberg's office highlighted Saudi Arabia's 'prominent' role in mediating this agreement, which includes the lifting of all banking restrictions imposed by both the Yemeni government and the Houthis against each other. The Houthis are set to 'release' a politician allied with the Yemeni government. The Central Bank of Yemen had imposed a ban on banking transactions with six banks controlled by the Houthis in Sana'a. The central government had previously requested these banks to relocate to Aden. This decision disrupted financial transactions between Sana'a and Aden. The Central Bank, established by the Houthis in Sana'a, also imposed a ban on transactions with 13 banks in Aden, accusing the US and Saudi Arabia of attempting to exert financial pressure on them in retaliation for the actions of the Aden Central Bank. Mr. Grundberg's office now states that the parties have agreed to begin negotiations to resolve all financial and humanitarian issues based on the UN roadmap. The statement emphasized the need for a constructive approach from both sides to solve the financial problems of the Yemeni people, a ceasefire in the country, and a political approach to resolve disputes. Part of these financial disputes involves the seizure of Yemeni Airlines' assets by the Houthis in Sana'a banks. The agreement also includes the resumption of flights from Sana'a to Jordan, with three flights per day. Yemeni Airlines will also have one daily flight to Cairo and India. About 20 days ago, the Houthis announced that, based on an agreement with the Yemeni government, they would release Mohammed Qahtan, the leader of the 'Islah' party and a politician allied with the Yemeni government.