President Mohamed Farmaajo has commended both the country’s achievement to reach interim debt relief.
In a statement, President Mohamed Abdullahi Farmajo said the decision by the World Bank and IMF was critical for reforms in Somalia.
“This debt relief decision by IMF, WB, IDA and the support from friends of Somalia, is a timely boost for our longstanding transformation and sectoral reforms in Somalia,” the statement read in part.
The president added his administration ‘will maintain our sustained efforts and institutional strengthening for the completion of this journey.’
The remarks of the president comes a barely after the IMF and World announced Somalia qualified for debt relief after meeting reform benchmarks and clearing debts owed to its multilateral creditors.
In a statement, the International Monetary Fund (IMF) said together with the World Bank’s International Development Association, it has determined that Somalia has taken the necessary steps to begin the process.
Somalia is the 37th country to reach this milestone, known as the HIPC Decision Point.
In 1996, the World Bank and IMF launched the HIPC Initiative to create a framework in which all creditors, including multilateral creditors, can provide debt relief to the world’s poorest and most heavily indebted countries to ensure debt sustainability, and thereby reduce the constraints on economic growth and poverty reduction imposed by the unsustainable debt-service burdens in these countries.
To date, 37 HIPC countries, including Somalia, have reached their decision points, of which 36 have reached the completion point.