ADEN, Yemen, Feb. 8 (Xinhua) -- Yemen and the Kuwait Fund for Arab Economic Development (KFAED) agreed on Saturday to resume the fund's financing for development projects and restructure overdue debt payments, Yemen's official Saba news agency reported.

The deal, signed in Saudi Arabia's capital Riyadh, aims to revive stalled Kuwaiti-funded initiatives and reschedule outstanding payments owed to the fund, Saba said.

In a statement on social media platform X, the KFAED said the agreement would restart its programs in Yemen and ease the country's debt burden by restructuring overdue interest and installments. This would help Sanaa address "urgent economic and financial challenges," the fund added.

Funding will focus on key sectors including energy, education, and public works, according to the KFAED.

Kuwait has long been a major development donor to Yemen, but many projects were halted in recent years amid instability linked to the country's conflict, now in its ninth year.

Yemen remains gripped by a severe economic crisis exacerbated by the war, which the United Nations says has triggered the world's worst humanitarian disaster. Enditem

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