IMF Managing Director Kristalina Georgieva today announced that the International Monetary Fund has secured sufficient financing pledges to allow the Fund to provide comprehensive debt relief to Somalia. Over 100 IMF member countries have pledged to provide more than SDR 242 million (US$334 million) in financing. 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. This will help unlock significant new amounts of development assistance and pave the way for higher and more inclusive growth.
Ms. Georgieva applauded the financing breakthrough, noting, “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.”
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 said.
For additional background on Fund relations with Somalia, see: http://www.imf.org/external/country/SOM/index.htm