IMF grants Somalia interim assistance of $ 970,000
The International Monetary Fund (IMF) has granted Somalia an additional interim assistance of $ 970,000 based on the grace period under the enhanced Heavily Indebted Poor Countries (HIPC) initiative.
This will cover Somalia’s debt service obligations from March 25, 2021 to March 24, 2022.
Interim assistance under the enhanced HIPC Initiative is debt relief granted on a country’s debt service maturing between the HIPC decision and completion points. Once a country reaches the HIPC completion point, it will receive the full debt relief committed at the HIPC decision point.
The IMF said the Executive Board on March 25 last year approved Somalia as having reached the HIPC decision point. The Board approved three-year agreements under the Extended Credit Facility (ECF) and the Extended Finance Facility (EFF)
The Board also approved interim assistance of approximately $ 1.5 million for the period March 25, 2020 to March 24, 2021. The first review of the CEF was completed on November 18, 2020.
Performance under the ECF-supported program has been satisfactory and Somalia continues to make progress in debt rescheduling and other reforms necessary to reach the HIPC Initiative completion point.