Somali Magazine – The International Monetary Fund (IMF) has provided Somalia with a critical $100 million lifeline to boost its post-debt relief economic development goal. The three-year Extended Credit Facility (ECF) agreement, which was granted on December 19th, comes as Somalia breaks from the shackles of severe debt under the Heavily Indebted Poor Countries (HIPC) Initiative, which was concluded on December 13th.
According to the IMF, completing the HIPC Completion Point and finishing the 2020 ECF program “testifies to the Somali authorities’ sustained track record of reform implementation over the past years, despite numerous challenges.” The authors went on to say that “through these efforts, Somalia has made considerable progress in strengthening key economic and financial institutions, as well as improving governance.”
This historic achievement demonstrates Somalia’s commitment to economic change despite enormous hurdles. The country has made significant progress in strengthening key financial institutions and enhancing governance in recent years. The road ahead, however, remains difficult.