2. First, even with the licenses and exemptions in place for humanitarian work, the designation will have serious implications, causing delays and uncertainty in their ability to deliver assistance, making it even more difficult to operate in Yemen.
3. Second, OFAC and related licenses do not cover enough of the commercial sector, which do not provide sufficient guarantees to international banks, shipping companies and suppliers that still face the risk of falling foul of US laws.
4. Third, this designation will likely mean that banks will stop lending money and providing financial services to Yemen as we have seen in other contexts, including remittances from Yemeni diaspora. [End]
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