IMF chief assures Somalia of support to clear debts

The International Monetary Fund has expressed its support towards Somalia’s debt relief process.

The lender’s managing director Kristalina Georgieva said during a meeting with Prime Minister Hassan Khaire her institution will work closely with the international community to enable Somalia clear its arrears as it inches closer to meeting the debt relief threshold.

“I assured the Prime Minister of the IMF’s full support for Somalia’s efforts to secure debt relief, including working with the membership of the Fund to secure the financial resources necessary to clear arrears to the IMF and cover the costs of debt relief,” said Georgieva.

Georgieva noted maintaining strong performance, together with support from international partners, will pave the way for Somalia to receive debt relief in the near future.

PM Khaire alongside Finance Minister Abdirahman Beileh are attending the annual fall meetings of the World Bank and IMF where the two have been pitching debt relief proposals. To reach the decision point under the Highly Indebted and Poor Countries (HIPC) initiative, Somalia will need to clear arrears owed to both the IMF and the World Bank.

Norway announced last week it would consider a $350 million bridging loan to Somalia to allow it clear debts owed to the World Bank. The World Bank would then loan Somalia so that it can pay back Norway, according to a statement from the Norway government.