## LIQUIDATION AND TERMINATION OF THE ADMINISTERED ACCOUNT FOR SOMALIA ## Source details **Canonical URL:** [LIQUIDATION AND TERMINATION OF THE ADMINISTERED ACCOUNT FOR SOMALIA](https://www.imf.org/-/media/files/publications/pp/2025/english/ppea2025024.pdf) ## Other formats - [Markdown version](/-/media/files/publications/pp/2025/english/ppea2025024.pdf.md) - [Structured JSON version](/-/media/files/publications/pp/2025/english/ppea2025024.pdf.json) --- ### Background - The Administered Account for Somalia (the “Somalia Administered Account” or “SAA”) was established by the IMF Executive Board on December 18, 2019 to: - receive contributions from Fund members and non-members to finance debt relief to Somalia; and - use these resources to make contributions under the Heavily Indebted Poor Countries (HIPC) Initiative debt relief to Somalia and to deliver “beyond-HIPC” debt relief to Somalia. - One hundred and two member countries and the European Commission (EC) (the “Contributors”) financed the SAA with total contributions of SDR 253.7 million. - Contributions were facilitated by: - the partial distribution of SCA-1 resources amounting to SDR 122 million, and refunds of Somalia-related burden-shared deferred charges adjustments totaling SDR 120 million; and - cash grant contributions of about SDR 120 million from 13 donors, including the EC as a top-up in case of a remaining financing gap. ### Debt relief delivered and SAA fulfillment - On December 13, 2023, Somalia reached its HIPC Completion Point and received full debt relief in the amount of SDR 250.43 million. - During the interim period between the HIPC Decision and Completion Points, the IMF Executive Board approved four tranches of HIPC interim assistance to Somalia totaling SDR 4.81 million to cover 100 percent of debt service obligations falling due to the Fund. - The total debt relief delivered to Somalia since the HIPC Decision Point, including HIPC interim assistance, amounted to SDR 254.43 million and was financed using resources in the SAA. - Staff assesses that the SAA has fulfilled its purpose and may be liquidated and terminated, consistent with Paragraph 10 of the SAA Instrument. ### Remaining balances and disposition (as of end-April 2025 / April 30, 2025) - Remaining balance in the SAA as of end-April 2025 amounted to SDR 12.2 million. - Of the SDR 12.2 million, SDR 4.7 million is available for disposition according to instructions received from 101 SAA contributing members. - Contributor refund requests and instructions received as of April 30, 2025: - 39 contributing members have requested a refund of their pro-rata shares in the SAA residual balance. - Of these 39 refund requests: - 36 requested transfers of their pro-rata shares to their SDR holdings accounts (approximately SDR 2.08 million). - 2 requested transfers to Euro-designated accounts (approximately SDR 0.13 million). - 1 requested transfer to a US Dollar designated account (approximately SDR 0.79 million). - The EC requested a full refund of its EUR 9 million contribution in March 2024 and, as a top-up contributor, will be refunded its full share; the EC directed the equivalent as a special contribution to replenish Somalia’s SDR holdings. - The pro-rata shares of contributors who have not explicitly requested a refund are estimated at SDR 1.7 million as of April 30, 2025; these shares will be transferred to the PRG-HIPC Trust on the liquidation date. - Paragraph 10 of the SAA Instrument provides that any balance remaining in the SAA on the date of its termination shall be transferred to the PRG-HIPC Trust, except that a Contributor’s pro-rata share, or any portion of such share, shall be distributed to the Contributor at the Contributor’s request. - A SWIFT message will not be sent to the Democratic Republic of São Tome and Príncipe as its pro-rata share in the SAA residual balance is less than SDR 1. ### Operational steps for liquidation - Conditional on the Board’s approval of the proposed liquidation date, staff will send SWIFT communications to the fiscal agencies of 101 SAA contributing members informing them of: - the liquidation date, - their updated pro-rata shares, and - the disposition of these shares according to their instructions. - These SWIFT communications will be used as the official instruction for disposition of each contributor’s share. ### Proposal and timing - Staff proposes to liquidate the remaining balance in the SAA and for the Board to decide to terminate the SAA on August 1, 2025. - The liquidation of the SAA and the transfer of contributors’ pro-rata shares are proposed to take place on August 1, 2025 and will: - reflect the SAA balance as of July 31, 2025, and - coincide with the payment of quarterly interest accrued on the SAA balance between May 1, 2025, and July 31, 2025. ### Proposed Decision (for adoption by a majority of the votes cast) - The Fund considers the purpose of the Administered Account for Somalia (the “Account”) has been fulfilled. - Pursuant to Paragraph 10 of the Instrument for the Establishment of the Account, set forth in Decision No. 16626-(19/103), adopted December 18, 2019, the Account is hereby terminated effective August 1, 2025. *Prepared by the Finance and Legal Departments; Report completed July 2, 2025.* --- _Source: https://www.imf.org/-/media/files/publications/pp/2025/english/ppea2025024.pdf_