The IMF provides additional temporary assistance to Somalia
The International Monetary Fund (IMF) said it had provided additional temporary assistance to Somalia under the intensified heavily indebted poor country (HIPC) initiative of $ 0.97 million over a period of time.
The IMF said in a statement issued Thursday night that the interim assistance will cover Somalia’s debt obligations to the fund for the year ending March 24, 2022.
On 25 March last year, the IMF and the World Bank approved Somalia’s eligibility for the HIPC initiative and provide access to International Development Assistance (IDA) instruments to mitigate the effects of several crises in Somalia.
The IMF Board also approved $ 1.5 million in temporary assistance for the year beginning March 25, 2020.
“Performance under the Extended Credit Facility Supported Program has been satisfactory and Somalia continues to make progress on debt planning and other reforms needed to reach the HIPC implementation point,” the IMF said.
Reaching completion points means that Somalia has implemented reforms agreed when the country reached the “decision point”, once Somalia’s eligibility for debt relief is confirmed and its relationship with international financial institutions is fully normalized.
Decades of conflict and fragmentation of the state have left Somalia’s public health system limited and unable to put in place an appropriate, timely and effective response to manage the COVID-19 crisis.
.
