Somalia: Staff Report for the Sixth Review Under the Extended Credit Facility (ECF) Arrangement and Request for a Three-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Somalia

IMF Staff Country Reports, December 20, 2023

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Canonical URL: Somalia: Staff Report for the Sixth Review Under the Extended Credit Facility (ECF) Arrangement and Request for a Three-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Somalia

Presents the Sixth Review under the Extended Credit Facility (ECF) Arrangement and Request for a Three-Year Arrangement under the ECF.
Authorities’ strong commitment and successful implementation of reforms rebuilt Somalia’s economy and institutions and led to Somalia reaching the completion point under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative.
The new ECF-supported program builds on progress to date, including the HIPC Completion Point, and seeks to advance reforms to strengthen key economic institutions and promote inclusive growth.
Continued financial and capacity development support from international partners is described as imperative to support the authorities’ reform efforts.

Completion of the program supported by the ECF contributed to Somalia reaching the HIPC Completion Point.
The new ECF-supported program aims to:
- Advance reforms to strengthen key economic institutions.
- Promote inclusive growth.
External financing is expected to be based solely on grants and concessional loans to preserve debt sustainability.

Fiscal policy will be guided by a prudent framework that:
- Balances the need for higher development expenditure with protecting fiscal sustainability.
- Takes into account capacity constraints.
Debt sustainability considerations underpin the expectation that external financing will be solely grants and concessional loans.

Subjects: Asset and liability management; Debt relief; Debt service; External debt; International organization; Monetary policy; Public debt; Public financial management (PFM).
Keywords: Debt relief; Debt service; ECF arrangement; ECF program; Global; government institution; HIPC Completion Point; Somali authorities.