On Thursday, Somalia received a major boost in its attempt to qualify for debt relief. The World Bank and IMF have just announced that the country’s eligibility for financial assistance was no longer in doubt.
Furthermore, the two institutions announced that the Horn of Africa nation would qualify for more funding by March 2020 once it attains the threshold set. The main condition is the need for continuing on the path of sustainable reforms.
Following a preliminary evaluation, the Bretton Woods institutions revealed that the country was the right candidate for financial help. Soon Somalia would start receiving the help that enables it to get rid of the debt worth $5.3 billion that seeks to cripple it.
The huge debt has made it impossible for Somalia to access credit facilities from international donors and markets.
Kristalina Georgieva, IMF’s Managing Director, says the decision is ‘historic.’ He continued by saying, “Our agreement with Somalia proves that the country is on the right path. The nation continues satisfying the requirements needed to qualify for debt relief.”
