The International Monetary Fund (IMF) has agreed to disburse 10 million U.S. dollars in budget support to Somalia following the completion of the first review of the Extended Credit Facility (ECF) arrangement for the country.
The loan, which was approved by the IMF board on Wednesday night, brings Somalia’s total disbursements under the arrangement to 50 million dollars, the lender said in a statement.
Antoinette Sayeh, deputy managing director of the IMF, said the Somali authorities have maintained a strong reform momentum after reaching the completion point under the Heavily Indebted Poor Countries Initiative in December 2023.
Sayeh said Somalia’s performance under the IMF-supported ECF arrangement has been strong, noting that continued strong ownership of the reform agenda by the authorities will be important for building resilience, promoting inclusive growth and reducing poverty.
Somalia’s ECF arrangement, which was originally approved in December 2023, supports the authorities’ reform strategy to further strengthen key economic institutions and promote macroeconomic stability and growth.
This, the lender said, is in line with Somalia’s national development plan and the government’s long-term vision to maintain economic stability, strengthen revenues and public financial management, promote financial deepening, improve governance and enhance statistics.
“Further strengthening of public financial management is also important, including continued progress on payroll integration, enhancing expenditure controls, as well as developing debt management capacity,” Sayeh said.
