Nairobi, SONNA – The Federal Authorities of Somalia and the Worldwide Financial Fund (IMF) have reached an settlement on a 36-month staff-level program geared toward enhancing the nation’s monetary system and selling financial restoration, following the profitable achievement of debt reduction.
The settlement was introduced in a report launched by the IMF on November 01, 2023, which praised the progress made by the Somali authorities in implementing monetary reforms and enhancing governance.
Somalia had efficiently accomplished the ninth and ultimate overview below the Prolonged Credit score Facility (ECF) association, which paved the way in which for Somalia to succeed in the completion level below the Closely Indebted Poor International locations (HIPC) Initiative in December 2023.
The completion level will mark the tip of an extended strategy of debt reduction for Somalia, which has been burdened by an unsustainable exterior debt of about $5.3 billion because the collapse of the central authorities in 1991.
The brand new ECF program, which is able to begin after the completion level, goals to information the insurance policies for the post-debt reduction interval, to additional strengthen the monetary establishments, help small companies and foster inclusive financial development according to the Nationwide Improvement Plan and the long-term imaginative and prescient of the Somali authorities.
The IMF mentioned that the brand new program will deal with sustaining macroeconomic stability, enhancing income mobilization and public monetary administration, enhancing monetary sector supervision and regulation, selling monetary inclusion and entry to credit score, and advancing structural reforms to enhance governance and transparency.
The IMF additionally mentioned that continued help from worldwide companions is crucial for Somalia to realize its growth objectives and overcome the challenges posed by the COVID-19 pandemic, local weather shocks, insecurity and humanitarian crises.
The Minister of Finance of the Federal Authorities of Somalia, Mr. Bihi Iman Egeh, welcomed the brand new settlement and mentioned that it’s going to facilitate the continuation of economic rehabilitation actions after the tip of the debt reduction program.
He mentioned that after greater than 30 years, Somalia might be dealing head to head with the worldwide monetary establishments and could have entry to concessional financing and grants to help its growth agenda.
He additionally thanked the IMF and different companions for his or her unwavering help and cooperation with Somalia all through the debt reduction course of.
