Turkey helps repay Somalia’s debt to IMF
Turkey is helping Somalia debt relief by pledging around 2.4 million Special Drawing Rights (SDRs), an IMF reserve currency, the country’s Official Gazette said on Thursday.
This decision is part of the Heavily Indebted Poor Countries (HIPC) Initiative, a framework created by the World Bank and the IMF to help alleviate the debt of the poorest and most heavily indebted countries in the country. world.
Turkey is involved in the international initiative by granting DTS currency to an administered account for Somalia, which provides a vehicle to facilitate fundraising and delivery of Somalia’s accumulated debt to the financial body.
According to Turkey’s Official Gazette, last March the IMF and the World Bank approved the Horn of Africa country’s eligibility for debt relief under the HIPC Initiative.
This means that Somalia’s debt will be reduced from $ 5.2 billion at the end of 2018 to $ 3.7 billion in net present value, an important step towards the country’s debt sustainability, increased growth and poverty reduction.
Turkey was one of 116 donor countries to contribute to this debt relief.
Through this initiative, Somalia will have access to new financial resources from international donors, which should help it pursue the necessary economic reforms.
Somalia expresses ‘gratitude’ for Turkey’s support
Commenting on the decision, Abdulkadir Mohamed Nur, Somali justice minister, said on Twitter:
“My heart felt gratitude to Turkish President Recep Tayyip Erdogan for his continued support for Somalia, especially for the economic reforms that allowed Turkey to wipe the money from Somalia’s debt to the IMF, subtracting money owed to Turkey by the IMF. “
My heart felt gratitude towards @RTErdogan for its continued support for Somalia, in particular for the economic reforms which enabled Turkey to write off Somali debt money with the IMF, by subtracting money owed to Turkey by the IMF. Turkey remains a strong ally for Somalia’s progress. pic.twitter.com/kLoidWjROJ
– Abdulkadir Mohamed Nur (@Amohamednur) November 5, 2020
Turkey remains a strong ally for Somalia’s progress, he concluded.
For more than two decades, Somalia has experienced protracted conflict and fragility and the collapse of the rule of law, institutions, basic public services and the social contract, resulting in the impoverishment of millions of people.
According to the IMF, nearly 70% of Somalis live on less than $ 1.90 per day and economic growth barely keeps pace with population growth, estimated at 2.8% per year.
The Anadolu Agency website contains only a portion of the stories offered to subscribers in the AA News Distribution System (HAS), and in summary form. Please contact us for subscription options.