Baghdad-INA
The International Monetary Fund announced that it had agreed to grant Somalia a loan worth $100 million over three years, after the country located in the Horn of Africa benefited in October from a plan to reduce its debt.
The Fund said in a statement that Somalia will be able to withdraw 75 million Special Drawing Rights (about $100 million), including an immediate payment of $40 million to support the poor country’s budget.
The Fund explained that these funds will be disbursed within the framework of the “Extended Credit Facility” program, which provides medium-term financial assistance to low-income countries that suffer from long-term difficulties in the balance of payments.
The statement added, “The new Somali program supported by the extended credit facility builds on the progress achieved so far (…) and aims to contribute to reforms aimed at developing key economic institutions and promoting inclusive growth.”
The Fund stressed in its statement that the support of international partners is “necessary to support the reform efforts made by the Somali authorities.”
The International Monetary Fund and the World Bank announced in October that Somalia’s international creditors had agreed to write off $4.5 billion of this poor country’s debt.
2023-12-20 08:49:25