IMF Reaches a Staff-Level Agreement for the First Review of the Extended Credit Facility for Somalia

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. We invite you to donate to our fundraiser to help us keep our quality news free and available to all.  

TheSomaliauthoritiesandtheIMFmissionteamreachedastaff-levelagreementonthe completion of the first review under the Extended Credit Facility.

FloodingandswarmsofdesertlocustshaveaggravatedthechallengesoftheCOVID-19 pandemic for Somalia. Swift support from the international community is helping the authorities address the impact on the Somali people and the economy.

Despitethesechallenges,theauthoritieshaveremainedsteadfastintheircommitmentto economic reforms, meeting all structural benchmarks for the first review and also making progress on the HIPC Floating Completion Point Triggers.

[read_more id="2" more="Read full article" less="Read less"]

A staff team from the International Monetary Fund (IMF), led by Allison Holland, held discussions with the Somali authorities during a virtual mission from September 12—22, 2020 on the first review of Somalia’s economic reform program being supported by an Extended Credit Facility (ECF) arrangement.

At the conclusion of the mission, Ms. Holland issued the following statement: “During the first half of 2020, Somalia has been hit by multiple shocks—flooding, desert locusts, and the global coronavirus pandemic. These have aggravated the humanitarian challenges, and negatively impacted the economy and the government’s ability to mobilize domestic revenues.

“The authorities have taken a number of measures to mitigate the impact of these shocks on the Somali people and the economy. These efforts have been underpinned by critical support from the international community and include temporary tax relief on some basic food commodities; the introduction of a cash transfer system for the most vulnerable, Baxnaano; and the launch of a credit facility, Gargaara, for micro-, small-and-medium-sized enterprises.

“Despite the crisis, the authorities have sustained their strong commitment to economic reforms and have made satisfactory progress in implementing key policies under the Extended Credit Facility (ECF) program, supporting a staff-level agreement on the completion of the first review.

All structural benchmarks and indicative targets for June were met, and all but one of the quantitative performance criteria (QPC). Cumulative domestic revenues through June for the Federal Government of Somalia (FGS) reached US$ 99 million against program target of US$ 109 million. The authorities will request a waiver from the IMF Executive Board End-of-MissionpressreleasesincludestatementsofIMF staff teams thatconveypreliminaryfindings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision. for the missed QPC based on the measures planned to ensure domestic revenues recover in 2021.

“Staf f commended the authorities on their continued progress on fiscal reforms, including in the areas of tax and customs administration, and ongoing efforts to enhance intergovernmental fiscal relations and transparency. The mission emphasized the importance of a formulating a 2021 budget consistent with the ECF-program objectives and urged continued control on operating expenditures to create fiscal space for spending on priorities identified in the authorities’ Ninth National Development Plan (NDP9). The mission and the authorities agreed a new structural benchmark that will underpin further improvements in general government fiscal transparency and accountability.

“The mission welcomed the newly appointed senior management of the Central Bank of Somalia and the progress being made on reorganizing the institution. It also commended the authorities on further progress on AML/CFT issues, including the ongoing work on the National Risk Assessment and efforts to build capacity at the Financial Reporting Center. The mission urged the authorities to expedite the licensing of the mobile money operators (MMOs) to advance the implementation of the mobile money regulatory regime. A new structural benchmark was agreed that will ensure greater transparency in the licensing of MMOs and the issuance of the underlying telecommunications licenses.

“Staf f congratulated the authorities on the approval by the Council of Ministers of the National Anti-Corruption Strategy and its endorsement of the UN, African Union, and Arab League conventions against corruption. It urged swift Parliamentary ratification of these conventions to signal the country’s commitment to improving governance and fight against corruption.

“The mission appreciated the active efforts the authorities are making to reach agreement with their external creditors on debt relief consistent with the HIPC framework and outlined in the HIPC Decision Point document for Somalia.

“During the visit, the team met with Finance Minister Abdirahman Dualeh Beileh; Minister of Constitutional Affairs Salah Ahmed Jama; Minister of Justice Hassan Hussein Haji; Minister of Petroleum and Mineral Resources Abdirashid Mohamed Ahmed; Minister of Post, Telecommunications and Technology Abdi Ashur Hassan; Central Bank Governor Abdirahman Mohamed Abdullahi; Acting Director of the National Communications Authority Abdullahi Abdiaziz Mohamed; and other senior officials. The IMF team would like to thank the Somali authorities for their cooperation and the open and productive discussions.”

[/read_more]

Today News Africa
Today News Africahttps://todaynewsafrica.com
TODAY NEWS AFRICA is registered and headquartered in Washington, District of Columbia, United States of America. Our publication is widely read, respected and influential. By providing daily answers to questions our readers have about the people, the businesses and the continent of Africa, we are reaching a diverse and wide audience from around the world. Our readers, many of them world leaders, trust us because we are independent and truthful. Our advertisers understand the difference between news, views and ads. Contact us: contactus@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

Damning report finds detainees in Iran were sexually abused and given electric shocks in gruesome post-protest crackdown

Iran’s police, intelligence and security forces, and prison officials have committed, with the complicity of judges and prosecutors, a catalogue of...

Anxiety in Africa as Johnson & Johnson conceals critical details about COVID-19 vaccine illness

Anxiety continued to mount across Sub-Saharan Africa on Monday over COVID-19 vaccine trials by Johnsons & Johnson, as the company continued...

Joe Biden wins last presidential debate against Donald Trump

Joe Biden was surprisingly aggressive, it was perhaps the best debate he has had in 2020.Republicans...

Many shot, many killed, blood everywhere, as Africa’s most populous country slips into chaos

Nigeria, Africa's most populous country with more than 200 million people, is slipping into chaos. In the commercial city of Lagos,...

South Africa launches $6 billion COVID-19 employment stimulus

South Africa has launched a $6 billion (R100 billion) COVID-19 employment stimulus to be implemented over the next three years.

Nigerians in USA to hold ‘mother of all protests’ against police brutality and bad governance in their home country

Nigerians in the United States would hold the 'mother of all protests' on Saturday against police brutality and bad governance in...

Trump says Sudan to be removed from terrorism list if it pays $335 million in compensation

President Donald Trump on Monday said Sudan will be removed from the U.S. list of state sponsors of terrorism once it...

Pope names 13 new cardinals including Rwandan and first African American

Pope Francis on Sunday named 13 new cardinals, including a Rwandan and the first African American prelate to earn the coveted...

As election season nears end, new Amnesty International USA ad raises alarm about the future of the United States

In a new full-page ad in The Washington Post, Amnesty International USA (AIUSA) is sending an open letter to all U.S....

African Union welcomes signing of permanent cease-fire between rival forces in Libya

The African Union on Sunday welcomed the signing of a permanent cease-fire between rival forces in Libya.

Videos and satellite imagery confirm security forces fired live bullet at protesters in Guinea

Witness testimonies, satellite imagery and videos analyzed and authenticated by Amnesty International confirm that defense and security forces in Guinea have...

Vice President Mike Pence’s top advisers, including his chief of staff, test positive for coronavirus

U.S. Vice President Mike Pence's chief of staff Marc Short, and two other top aides have tested positive for coronavirus.

Nigerians in USA hold protest against bad governance and police brutality in their home country

Nigerians in the United States on Saturday held a protest against bad governance and police brutality in their home country, shed...

Ethiopia’s Prime Minister erupts in anger after Trump’s Nile dam comments, says “Ethiopians have never kneeled to obey their enemies”

Ethiopia's Prime Minister Abiy Ahmed says his country "will not cave in to aggression of any kind" after President Donald Trump...

Vice President Mike Pence’s top advisers, including his chief of staff, test positive for coronavirus

U.S. Vice President Mike Pence's chief of staff Marc Short, and two other top aides have tested positive for coronavirus.Devin O'Malley, a spokesman for Mr. Pence said the Vice President and Second Lady both tested negative for the virus.“Vice President Pence and Mrs. Pence both tested negative for Covid-19 today, and remain in...

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

Share
WhatsApp
Reddit
Tweet
Share