The economic destruction, Yemen's declined revenues and "Houthi theft of state's resources in areas under their control" have posed obstacles to the payment of civil servant salaries, said official Prime Minister.
"Payment of civil servant salaries across Yemen, including areas occupied by Houthi militias, has nothing to do with international pressures," Maeen Abdulmalek told the London-based al-Arab paper. "This is the government decision, under instructions from the Yemeni President. The government is responsible for Yemeni land and people."
The government plans for refunding the deficit focus on improving the revenues, through enhancing the capacity of state's institutions, and finding other funding from Arab countries.
Yemen has been divided following a 4-year bloody conflict between the internationally-recognized Yemeni government's forces, backed by a Saudi-led coalition, and the Iranian-backed Houthi rebels who ousted the government in 2014.
After President Abd Rabbu Mansour Hadi decided to move the Central Bank of Yemen (CBY) in September 2016, the fiscal situation has failed in mess, with Houthis rejecting the move leading to two central banks in the Arab poorest country, leaving some one million civil servants unpaid.
As for UN efforts to broker an "economic truce" between the government and Houthis and to help cope with consequences of moving the CBY from Sana'a to Aden, the Yemeni PM said such talk "doesn't realize the nature of the problem in Yemen or the needed solutions. The issue is related to the reemployment of economy so as to serve the community through normal channels."
Still, the most "dangerous aspect and challenges blocking any economic truce lay in the Houthi interferences in the banking sector, kidnapping some of banks' directors .. and preventing traders from opening letters of credit at the CBY," he claimed.
The CBY's instructional structure has seen improvement stride, in comparison with former situation, he added, attributing that to the Saudi support in the form of a 2.2-billion deposit into the CBY and an oil grant.
Yemen 4-year war has pushed the country to the world's worst humanitarian crisis, according to the UN, with most of the population in need for a type of humanitarian aid and immediate protection, including 14 million people risking famine and some 1.8 million children suffering malnutrition.