IMF, Somalia Reach New Agreement on Financial Support, Reform

The State of Somalia announced that it had reached an agreement with the International Monetary Fund (IMF) on a new programme to strengthen the financial system and economic reconstruction in the country, which will continue for a period of 36 months, and will be implemented after the cancelation of external debts.

The Somali News Agency (SUNA) reported on Wednesday that the new extended credit facility program aims, according to what was announced by the International Monetary Fund, to direct economic policies after the debt relief program, to continue strengthening financial institutions, developing small companies, and growing the economy in line with the national development plan and long-term vision. 

In turn, Somali Finance Minister Bihi Iman Aghi stressed that this historic agreement will facilitate the continuation of financial rehabilitation activities after the end of the debt relief, as Somalia deals face to face with international financial institutions after more than 30 years.

The Somali government has made efforts in recent years to implement financial reforms and strengthen financial institutions and economic policies, paving the way for Somalia to achieve the completion of the debt relief process in December 2023.