Yemen is seeking a low-interest loan of up to $450 million from the International Monetary Fund to support economic reforms, according to Yemeni central bank governor Mohammed bin Hammam.

The loan, which would take the form of an extended credit facility, would be equivalent to 100% of Yemen 's $150 million quota with the IMF annually over a three-year period, Mr. Bin Hammam said in an interview Monday. That's the maximum that IMF member countries can borrow in relation to their quotas, he added.

"We are a poor country, and extended facility loans are given to poor countries at lower interest rates and maybe even without interest," Mr. bin Hammam said. He didn't specify the nature of the economic reform plan Yemen is planning, noting that the talks with the IMF are at an early stage.

His remarks represent the first time Yemen has confirmed talks with the IMF on additional loans and the amount of assistance under discussion.

The Arab country faces severe economic challenges following the popular uprising in 2011 that resulted in the toppling of former President Ali Abdullah Saleh, who had held power for more than 30 years. The new government, formed in February 2012, is due to hold parliamentary and presidential elections early next year, after a two-year transition.

Last year, Yemen received an emergency $94 million interest-free loan from the IMF, intended to stabilize the economy, safeguard foreign exchange reserves, create jobs and reduce poverty. At the time, the IMF described the emergency loan as an interim measure, to give the government breathing space to formulate longer-term economic measures.

The IMF has said that Yemen faces numerous economic challenges, including the need to improve tax collection, reform the civil service, and reduce subsidized fuel prices, the cost of which accounts for about 8% of gross domestic product. In a report on the Yemeni economy in December, the IMF said it "stands ready to continue to provide technical assistance and policy advice in support of Yemen 's home-grown reform efforts and to consider any further financial assistance the authorities may request."

Under its extended credit facility programs, the IMF offers cheap loans to low-income countries, repayable over 10 years. In exchange, IMF member countries agree a "letter of intent" that sets out a series of economic reforms.

A donors' conference in Saudi Arabia last year estimated that Yemen needs close to $11 billion to support its economic recovery. That conference yielded $6.4 billion in aid pledges for Yemen , and a subsequent meeting in New York produced an additional $1.4 billion in support. But most of that aid will come in the form of financing for projects, rather than support for the government's budget, according to Mr. Bin Hammam.

He said that Yemen has about $6 billion in foreign exchange reserves, sufficient to cover more than three months of imports.

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