Social Fund for Development Project - Phase IV
A loan agreement for KD 30 million was signed in Sana’a on 6 March 2011 between the Government of the Republic of Yemen and the Arab Fund for Economic and Social Development to help finance the Social Fund for Development Project - Phase IV
The loan agreement was signed by H.E. Mr. Abdul Karim Arhabi, Deputy Prime Minister for Economic Affairs - Minister of Planning and International Cooperation, on behalf of the Government of the Republic of Yemen, and by H.E. Mr. Abdlatif Yousef Al Hamad, Director General/Chairman of the Board of Directors, on behalf of the Arab Fund.
The project aims to alleviate poverty and combat unemployment through the provision of new employment opportunities, as well as supporting the community's development by financing sub-projects that will aid the development of both the infrastructure and basic services. This includes preserving historical and cultural heritage in order to benefit local communities and contribute to improving their living standards. The project will also provide loans to small and micro-enterprise projects in the productivity and service sectors to generate income and have an impact on economic and social development. The labor-intensive jobs will provide employment opportunities for those in need, while providing technical and institutional support to the organizations that participate in the implementation of the projects that will aid in the community's development, as well as the small and micro-enterprise projects.
The project includes the following main components:
1 - Part (a): Community and Local Development Program.
2 - Part (b): Small and Micro-enterprise Program.
The loan will carry interest at 2.5% per annum and will be repayable over 25 years with a 5-year grace period.
This loan was signed along with three other loans. With the singing of these four loans, the Arab Fund's total contribution to financing projects in the Republic of Yemen now amounts to KD 719.650 million.