IMF has promised to provide Somalia with $334 million to help the country’s debt relief efforts. Over 100 of IMF’s member states made this pledge recently.
IMF says the funds will then help the country to unlock another round of fresh funds. That is a positive development for a country with a debt load of over $5.3 billion, as of 2018.
The funds are part of IMF’s efforts towards helping the world’s poorest nations. Through it, the Federal Government of Somalia should have enough funds for clearing its IMF arrears.
IMF’s financial pledge to Somalia puts the country a step closer to receiving final approval. Kristalina Georgieva, IMF’s Managing Director, says, “The funds will reduce Somalia’s debts significantly. It will help the Horn of Africa nation to access fresh resources that it can then use to kickstart growth while reducing poverty.”