Via IMF (Den Internationale Valutafond)

IMF Managing Director Kristalina Georgieva Announces Financing Milestone on Debt Relief for Somalia

February 25, 2020

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.”

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“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:

IMF Communications Department


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