IMF Managing Director Kristalina Georgieva Welcomes Progress Toward Securing a Financing Plan for Debt Relief for Somalia

IMF News, December 18, 2019

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Press Release No. 19/470; December 18, 2019.
IMF Managing Director Kristalina Georgieva issued a statement following approval by the IMF Executive Board on a financing package for Somalia.
Key message: approval of a financing plan that will help mobilize the resources needed for the IMF to cover its share of debt relief to Somalia.

“Today, the IMF Executive Board approved a financing plan that will help mobilize the resources needed for the IMF to cover its share of debt relief to Somalia.”
The financing plan relies on:
- “a broad global effort, based on member contributions of cash grants and amounts derived from IMF internal resources.”
The financing plan is intended to facilitate Somalia’s progress toward debt relief under the Heavily-Indebted Poor Country (HIPC) initiative.
“The HIPC Decision Point, at which time debt relief will begin to be delivered, could be reached as soon as our members have provided the necessary financial commitments, assuming the authorities continue their strong reform efforts.”

“Debt relief for Somalia is a priority for the IMF.”
The IMF welcomes member support and recognizes “the progress Somalia has made on economic reforms under successive IMF Staff-Monitored Programs (SMP).”
Expected benefits if conditions are met:
- “This would help unlock significant new financial resources to address Somalia’s large development needs and poverty reduction.”

Statement by IMF Managing Director Kristalina Georgieva; Press Release No. 19/470; December 18, 2019.