International Monetary Fund staff reached a staff-level agreement with Somalia that will allow the release of about $10 million to the East African country and was approved.
“The deal came after review from Somalia’s Extended Credit Facility in Nairobi, Kenya” said Laura Jaramillo. She also gave appraisal to authorities for sticking to economic reforms despite a prolonged drought, the impact of Russia’s war in Ukraine and continued security concerns.
” IMF’s board is expected to review the agreement in early December,If Somalia improve on reforms, it could reach the completion point of the Heavily Indebted Poor Countries (HIPC) global debt forgiveness process by 2023, which would allow Somalia to pare its debt to around $550 million from $5.2 billion,it would reduce Somalia’s debt to around 7% of gross domestic product from around 90%,that will be a tremendous milestone,“, said Jaramillo
The IMF said Somalia still needed support from international partners given the current severe food crisis, but also needed to work on longer-term “resilience to climate shocks.”
