MOGADISHU, March 26 (Xinhua) — The International Monetary Fund (IMF) said it has granted additional interim assistance to Somalia under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative of 0.97 million U.S. dollars on a lapse of time basis.
The IMF said in a statement issued on Thursday evening that the interim assistance will cover Somalia’s debt service obligations to the fund for the year that ends on March 24, 2022.
On March 25 last year, the IMF and the World Bank approved Somalia’s eligibility for the HIPC Initiative, providing access to International Development Assistance (IDA) instruments to mitigate the impact of multiple crises in Somalia.
The IMF board also approved an interim assistance of 1.5 million dollars for the year starting March 25, 2020.
“Performance under the extended credit facility-supported program has been satisfactory and Somalia continues to make progress on debt rescheduling and other reforms needed to reach the HIPC Completion Point,” the IMF said.
Reaching completion points means Somalia has implemented reforms agreed to when the country reached the “decision point,” when Somalia’s eligibility for debt relief is confirmed and its relations with international financial institutions are fully normalized.
Decades of conflict and state fragmentation have left Somalia’s public health system constrained and unable to mount an adequate, timely, and effective response to manage the COVID-19 crisis. Enditem