IMF announces decision that may impact Somalia1 min read
The International Monetary Fund (IMF) has spoken out about the transition in Somalia, announcing that delays in the elections will have a significant impact on military subsidies, the forthcoming debt forgiveness plan and the country’s economy.
The head of the International Monetary Fund (IMF) for Somalia, Laura Jaramill, has said financial support will be halted if elections are postponed to May 17, 2022.
She added that any delay in the elections could jeopardize the timing of the renewal of the IMF & Somalia agreement.
“Delayed elections pose a threat to the timing of the renewal of the IMF & Somalia agreement. This move will have a negative impact on the work of the government,” Laura told Reuters.
She also spoke about the debt forgiveness plan, noting that Somalia needs to pay between $ 5 billion and $ 10 billion.
“Somalia’s budget is $ 400 million. Part of the debt reduction agreement is to provide more than $ 5 billion to $ 10 billion.
By May 17, if the elections are not completed, the subsidy will stop to support the military, ”said the IMF chief.
Concerns are mounting, as Somalia’s elections have been delayed by one year, and it appears that elections will continue for months to come.
However, the international community and Somali stakeholders have repeatedly issued warnings of delays in the elections, in order to overcome the transition.