and Development are each currently being restructured with the goal of eventual privatization. Because of fiscal difficulties in both banks, Yemen's government adopted a plan to merge all three banks in 2004; the new publicly owned Development Bank will have a minimum capital of US$50 million. As of April 2011, this step has not yet materialized. The large volume of non-performing loans, low capitalization, and weak enforcement of regulatory standards hamper Yemen's banking sector as a whole. Numerous banks are technically insolvent. Because many debtors are in default, Yemen's banks limit their lending activities to a select group of consumers and businesses. As a result, the entire banking system holds less than 60 percent of the money supply; the bulk of the economy operates with cash. Legislation adopted in 2000 gave the Central Bank the authority to enforce tougher lending requirements, and in mid-2005 the Central Bank promulgated several new capital requirements for commercial banks, together aimed at curtailing currency speculation and protecting deposits. Energy Yemen's state-owned Public Electricity Corporation (PEC) operates an estimated 80 percent of the country's electricity generating capacity (810–900 megawatts) as well as the national power grid. Over the past 10 years, the government has considered various means of alleviating the country's significant electricity shortage, including restructuring the PEC, integrating the power sector through small-scale privatization of power stations, creating independent power projects (IPPs), and introducing gas-generated power plants to free up oil supplies for export. However, because of inadequate infrastructure, large-scale IPPs and privatization proposals have failed to materialize; several smaller-scale projects in Mukalla and Aden, however, have been completed, and contracts have been signed for future projects. In 2004, Yemen's diesel-run power plants generated 4.1 billion kilowatt-hours of electricity, a level of production that is insufficient to maintain a consistent supply of electricity. Although demand for electricity increased 20 percent between 2000 and 2004, it is estimated that only 40 percent of the total population has access to electricity from the national power grid, and supply is intermittent. To meet this demand, the government plans to increase the country's power generating capacity to 1,400 megawatts by 2002. Government budget In 1995, in order to comply with conditions stipulated by the International Monetary Fund (IMF), Yemen began an economic reform program, one component of which is fiscal policy reform aimed at reducing deficits and expanding the revenue base. However, the government has failed to significantly