• 25-MAR-2020

  • Washington, DC

IMF announces debt relief for Somalia

On Wednesday, March 25, Kristalina Georgieva, Managing Director of the IMF, thanked the leaders of Somalia for their sustained reform effort and congratulated the country on reaching the decision point under the Heavily Indebted Poor Countries (HIPC) Initiative, becoming the 37th country to receive such debt relief.

“My name is Kristalina Georgieva. I'm the Managing Director of the International Monetary Fund. But today I am proud to hold the title 'Friend of Somalia.' I want to congratulate each one of you on this momentous occasion. Your collective commitment to reforms has brought Somalia here to the HIPC decision point at a very difficult moment for the world.”

With the approval of the IMF’s and World Bank’s Executive Boards, the country will immediately receive interim relief on its external debt servicing, and its debt will be irrevocably reduced.

“I recognize that what you have done has not been easy. Still, you persevered. The international community stands with you as you continue the journey to bring greater prosperity to all the people of Somalia.”

The HIPC decision point also means that Somalia will immediately normalize its relations with the international community, allowing it to regain access additional financial resources to help accelerate growth, improve social conditions, and raise millions of its population out of poverty.

“So let us pause briefly to recognize this historic moment. Let us reflect on this good news, during such difficult times and then let us remember, as Robert Frost once said, we still have miles to go before we sleep. We have work to do. At the IMF we look forward to continuing to support you on this journey. We wish you wholeheartedly all the success.”

You can read the full IMF and World Bank announcement here:

https://www.imf.org/en/News/Articles/2020/03/25/pr20104-somalia-somalia-to-receive-debt-relief-under-the-enhanced-hipc-initiative

https://www.imf.org/en/News/Articles/2020/03/25/pr20105-somalia-imf-executive-board-approves-3-year-ecf-and-eff-arrangements

You can see more about the IMF and Somalia here:

https://www.imf.org/en/Countries/SOM