The International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Wednesday morning announced that IMF had secured sufficient financing pledges to provide ‘comprehensive debt’ relief to Somalia.
In a statement from Washington D.C., the IMF boss said over 100 IMF member countries have pledged to provide more than $334 million in financing.
She said once all pledges are formalized, a process will be followed of clearance of arrears to the Fund and new Fund financing that will enable the delivery of HIPC Initiative and other debt relief to Somalia, adding that this will help unlock significant new amounts of development assistance and pave the way for higher and more inclusive growth.
“Today’s financing milestone opens up a historic opportunity for Somalia to move toward comprehensive debt relief from the IMF and the international community. We are firmly committed to supporting Somalia in its recovery after a long period of conflict and devastation,” Ms. Georgieva said.
The Managing Director offered her thanks to the IMF’s member countries for their generous support, adding, “I also wish to acknowledge the cooperative efforts of our member countries around the world, including many lower-income economies, as well as the strong cooperation from the World Bank, African Development Bank, Paris Club, European Commission, and other development partners, which are critical in this multilateral initiative.”
“This marks a clear recognition by our members for Somalia’s strong and sustained commitment to economic and financial reforms, despite very challenging circumstances. This takes Somalia one step closer to the HIPC Decision Point, which will significantly reduce Somalia’s total debt and enable access to new resources to jumpstart growth and begin reducing poverty,” Ms. Georgieva added.