ADDIS ABEBA – Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), has welcomed the latest progress roward securing a financing plan for debt relief for Somalia.
“Today, the IMF Executive Board approved a financing plan that will help mobilize the resources needed for the IMF to cover its share of debt relief to Somalia,” the managing director said in a statment.
“This financing plan relies on a broad global effort, based on member contributions of cash grants and amounts derived from IMF internal resources,” she said.
World Bank’s officials said the approval marks “a critical step in helping Somalia” advance the process of normalizing relations with the international community.
It is also seens as major progress towards achieving debt relief under the Heavily-Indebted Poor Country (HIPC) initiative by the managing director of the Fund.
“Debt relief for Somalia is a priority for the IMF. I am encouraged by the support from our members on this issue and their recognition of the progress Somalia has made on economic reforms under successive IMF Staff-Monitored Programs (SMP),” she said.
The official also said the HIPC Decision Point, “at which time debt relief will begin to be delivered, could be reached as soon as our members have provided the necessary financial commitments, assuming the authorities continue their strong reform efforts.
This would help unlock significant new financial resources to address Somalia’s large development needs and poverty reduction.”