Washington, DC: On March 24, 2021, the Executive Board of the International Monetary Fund granted additional interim assistance to Somalia under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative in an amount of SDR 0.68 million (about US$ 0.97 million) on a lapse of time basis.[1]This interim assistance will cover Somalia’s debt service obligations to the Fund for the period March 25, 2021 through March 24, 2022.
On March 25, 2020, the Executive Board approved that Somalia had reached the HIPC Decision Point. At the same time, the Board approved three-year arrangements under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) (see Press Release No 20/105). The Board also approved interim assistance in the amount of SDR 1.11 million (about US$ 1.5 million) for the period March 25, 2020–March 24, 2021.
The first ECF review was completed on November 18, 2020 (see Press Release No. 20/344). Performance under the ECF-supported program has been satisfactory and Somalia continues to make progress on debt rescheduling and other reforms needed to reach the HIPC Completion Point.
Background
Interim assistance under the enhanced HIPC Initiative is debt relief granted on a country’s debt service falling due between the HIPC Decision and Completion Points. Once a country reaches the HIPC Completion Point, it will receive the full debt relief committed at the HIPC Decision Point.
[1]The Executive Board takes decisions under its lapse of time procedure when the Board agrees that a proposal can be considered without convening formal discussions.