Thursday September 19, 2019
(Hiiraan Online)The IMF has called for ‘strong support’ from the
international community to fast track Somalia’s realization of debt relief
thresholds noting the country had made significant progress towards meeting the
requisite conditions for debt relief.
Following a meeting with Somali officials led by
Finance Minister Abdirahman Beyle last week in Addis Ababa, the IMF staff noted
there was need for concerted efforts from the international community to prop
Somalia’s efforts in meeting the debt relief thresholds.
“To
fulfill the authorities’ goal of reaching the HIPC DP as soon as possible,
strong support from the international community will be critical to secure the
financing needed to clear Somalia’s arrears to the international financial
institutions (IFIs) and debt relief,” a statement from the global lender read
in part.
The
statement follows the review of the 4th Staff Monitored Programme
(SMPIV) which runs from May 2019-July 2020. The 4th SMP which is
part of the ongoing agreement between Somalia and IMF to allow the lender to
monitor the implementation of the authorities' economic program focuses on
revenue mobilization, financial sector stability and compliance with anti-money
laundering and terror financing.
The
IMF lauded Somalia’s commitment to realizing debt relief citing robust revenue
mobilization, new mobile regulations and agreements between the Federal
Government and Federal Member States on securing debt relief ‘despite broader
political differences’.
The
lender however warned inflation will temporarily increase to 4% due to higher
food prices as a result of poor rainfall earlier in the year. Key risks to the
outlook continue to reflect the difficult security situation and vulnerability
to climate shocks, the statement noted.
Economic
growth is projected to remain broadly stable at 2.9 percent in 2019.