Somalia: First Review Under the Staff-Monitored Program-Press Release; and Staff Report; IMF Country Report No. 19/343; October 1, 2019
IMF Staff Country Reports, November 18, 2019
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- Somalia: First Review Under the Staff-Monitored Program-Press Release; and Staff Report; IMF Country Report No. 19/343; October 1, 2019
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Bibliographic details
- Published: November 18, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513520582.002
Summary
- The paper discusses Somalia’s First Review Under the Staff-Monitored Program (SMP).
- Report focus areas:
- mobilizing revenues, including across the Federal Member States;
- strengthening public financial management;
- enhancing financial sector stability;
- strengthening compliance with the framework for anti-money laundering/ combating the financing of terrorism.
- The authorities’ strong commitment and program implementation has strengthened capacity despite a challenging environment.
- Underlying economic growth remains stable, supported by donor support and the ambitious and broad reform agenda.
- Key risks to the outlook: insecurity and recurring drought.
- Despite progress, growth is insufficient to substantially reduce poverty.
Findings on financial sector and institutions
- Financial stability reforms are deepening.
- New mobile money regulations are welcome; implementation will be key for supporting financial stability.
- Continued efforts to expand the operational and organizational capacity of the Central Bank of Somalia will underpin further development of the financial sector more broadly.
- Reducing Somalia’s debt to sustainable levels under the Heavily Indebted Poor Countries Initiative and normalizing relations with international financial institutions will unlock access to additional financial resources to address Somalia’s development needs.
Policy implications and priorities
- Advance revenue mobilization efforts, including cooperation and measures across Federal Member States.
- Strengthen public financial management systems to support program objectives and capacity building.
- Prioritize implementation of mobile money regulations to reinforce financial stability.
- Build operational and organizational capacity at the Central Bank of Somalia to support broader financial sector development.
- Pursue debt reduction under the Heavily Indebted Poor Countries Initiative and restore normal relations with international financial institutions to access additional financing for development needs.
- Maintain focus on mitigating risks from insecurity and recurring drought to protect the outlook and poverty reduction prospects.
Subjects and keywords
- Subject: Arrears, Expenditure, External debt, Public debt, Revenue administration
- Keywords: Arrears, authority, CR, development needs, excl. IMF, GDP data, ISCR, mitigating program implementation risk, Somali authorities, Somalia, U.S. dollar
Somalia: First Review Under the Staff-Monitored Program-Press Release; and Staff Report; IMF Country Report No. 19/343; October 1, 2019
Content in this bundle
- Executive Summary