IMF urges Somalia to clear arrears and take concrete action to reform economy
Nairobi — The International Monetary Fund says creditors may forgive part of Somalia’s outstanding $5.3bn debt if the strife-torn Horn of Africa state takes concrete steps toward reforming its economy and improving governance. Somalia, gripped by a three-decade civil war, would have to first clear arrears owed to the IMF, the World Bank and the African Development Bank, according to IMF’s country head Samba Thiam. An arrears-clearance plan, a new currency, an effective monetary policy and a "solid track record" on good governance might lead to fresh funding, Thiam said in an interview February 17 in Nairobi, Kenya. "There is a general willingness from creditors to write off Somalia’s debt when the time comes, it’s a good prospect," Thiam said. "They are not paying debt now, they will not be asked to pay tomorrow, so they have time to work on consolidating their economic base. The debt is an issue that will be resolved some time." Somalia is one of the last nations to qualify for deb...
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