Saudi gives $500m to ease Yemeni govt’s budget deficit

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Saudi Arabia will give conflict-riven Yemen’s internationally recognised government $500 million to pay salaries and other expenses, a Saudi official has said, AFP reports.

The sum is part of the $1.2 billion approved last year to prop up Yemen’s government, which was forced out of the capital Sanaa by Houthi rebels in 2014.

The Houthis are currently locked in escalating hostilities with Israel, with repeated missile and drone attacks prompting Israeli air raids on multiple targets on Thursday.

The money was allocated “to address the Yemeni government’s budget deficit”, the official told AFP. Saudi Arabia also made payments of $250m in February and in August last year.

“The funds aim to support salaries, operational expenses, enhance food security and assist economic reforms, reflecting (Saudi Arabia’s) commitment to Yemen’s security, stability and prosperity,” the official said.

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