A shortage of funds was threatening the future of the United Nations' Refugee Agency's (UNHCR) work in Yemen, dpa quoted an official as warning today. "We are facing a dramatic funding situation in Yemen and may be forced to scale down our operations for refugees and internally displaced people... if we do not receive fresh contributions very soon," said Melissa Fleming, a spokeswoman for UNHCR. The agency said it received less than 3 per cent of the 35.6 million dollars needed to continue its relief operations in the country. UNHCR's work includes providing shelter to those forced to flee their homes as a result of violence raging in areas of Yemen. Last month, global powers and key regional players held a conference in London on Yemen, following the Christmas Day attempted airline bombing over the United States, perpetrated allegedly by a man with connections to al-Qaeda's wing in the poor Gulf country. In addition to anti-government activity in the south, in part connected to the Islamist international terrorist network, Yemen also faces an influx of refugees from Somalia and a second insurgency in the north, being waged by the Shiite al-Houthi rebels.