HomeAfricaIMF resumes relations with Somalia after 22-year break

IMF resumes relations with Somalia after 22-year break

The International Monetary Fund (IMF) has resumed relations with Somalia after a 22-year interval following the prolonged civil war in the Horn of Africa country.

In a statement, made available to PANA in New York on Saturday, the IMF stated: “on Friday, the Fund formally recognized the Federal Government of Somalia, headed by President Hassan Sheikh Mohamud, paving the way for the resumption of relations after a 22-year interval.”

It said that the decision was consistent with broad international support and recognition of the Somali government, noting that, “the recognition of the government allows the IMF to offer Somalia technical assistance and policy advice”.

The IMF lamented that Somalia, an IMF member since August 1962, has been in a state of civil war since the early 1990s, and there was no government which the Fund could deal with.

It, however, said that with the resumption of relations, Somalia is currently ineligible to borrow from the Fund due to its outstanding arrears, which currently amount to Special Drawing Right (SDR) of 233.8 million (about US$ 352 million).

PANA recalled that in September 2012, a new federal government of Somalia, led by President Mohamud, took office.

The new administration had since enjoyed considerable support from the UN, the African Union (AU), the European Union (EU), the Organisation of Islamic Cooperation (OIC), and many IMF member countries. 

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