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UN, IMF hail Somalia’s debt relief breakthrough

Storyline:Business, National News

The UN and International Monetary Fund (IMF) have praised Somalia’s achievement of reaching the Decision Point milestone under the debt relief initiative.

Speaking separately, IMF managing director Kristalina Georgieva and UN chief in Somalia James Swan said the achievement was a major step in ending the country’s debt burden and unlocking resources for development.

“Achievement of the HIPC ‘Decision Point’ is a major step forward for Somalia’s economic progress, allowing the country to advance towards its long-term objective of inclusive economic growth and poverty reduction. All Somalis can be proud of this achievement,” said the UN Secretary-General’s Special Representative for Somalia, James Swan.

“It also reflects strong collaboration between the Federal Government and the Federal Member States, and sets a template for future collaboration in this and other areas,” he added.

On her part, Georgieva said expressed confidence in Somalia’s debt relief process and called for sustained efforts to realizing a debt free nation.

“Successful reform efforts have laid the foundation for inclusive economic growth and for addressing the needs of the country’s most vulnerable people,” the IMF boss said. “Work must continue to sustain and expand the implementation of these reforms as Somalia starts a new chapter of its history. I am confident a more resilient and prosperous future lies ahead for the people of Somalia.”

Announcing Somalia had reached the Decision Point Wednesday, the IMF and World Bank said Somalia’s debt will be erased in about three years’ time.

“Debt relief will help Somalia make lasting change for its people by allowing its debt to be irrevocably reduced from US$5.2 billion at end-2018 to US$557 million in net present value terms (NPV) once it reaches the HIPC Completion Point in about three years’ time,” a statement from the Fund read in part.

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