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The International Monetary Fund (IMF) has agreed to extend the duration of its financial aid programme to Somalia, which was due to end this month if a new administration is not in place, an official said.
The International Monetary Fund (IMF) has agreed to extend the duration of its financial aid programme to Somalia, which was due to end this month if a new administration is not in place, an official said.
Hassan Sheikh Mohamoud was elected as Somalia’s new leader during the weekend, ending the uncertainty that continued for a long time. The IMF’s three-year US$400 million (€380 million) aid programme was due to expire automatically on 17 May if elections were not held.
Last week, the IMF agreed to the Mogadishu government’s request for a three-month extension of the programme. The extension will allow time to confirm policy agreements with the new government and confirm funding assurances with development partners.
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International partners have welcomed the election of Hassan Sheikh Mohamoud. Under the IMF programme, Somalia’s debt could be reduced to US$557 million, or about 6% of the estimated GDP. This debt reduction could then allow Mogadishu to attract more funds.
