Nigeria, Other IMF Members Pledge $334 Million Somalia Debt Relief

The International Monetary Fund (IMF) has said that over 100 member countries including Nigeria have pledged $334 million to provide comprehensive debt relief for Somalia.

IMF managing director, Kristalina Georgieva, while disclosing the development in Washington, U.S.A. said that once all the pledges are formalised, “a process will be followed of clearance of arrears to the Fund and new Fund financing that will enable the delivery of HIPC Initiative and other debt relief to Somalia.”

Somalia is a heavily Indebted Poor Country (HIPC) among the 37 developing countries with high level of poverty, with the number of internally displaced persons in the country estimated to be over 2.7 million in 2018.

Georgieva said that the move would bring significant development and pave way for a more inclusive growth, adding that the body was committed to helping Somalia in its recovery after years of conflict and devastation.

The MD applauded member countries for their support especially lower income countries, while she thanked the World Bank, African Development Bank, Paris Club and the European Union for their role in multilateral initiatives.

“This takes Somalia one step closer to the HIPC Decision Point, which will significantly reduce Somalia’s total debt and enable access to new resources to jumpstart growth and begin reducing poverty,” she said.

Georgieva said further that the $334 million would significantly reduce the African nation’s debt profile, adding that  thecountry could also have access to new resources which would enable economic growth and consequently reduce poverty.