Economics
IMF Says Donors May Partly Forgive Somalia's $5.3-Billion Debt
- Cancelation depends on good governance, clearing arrears
- State will circulate shilling notes to bolster monetary policy
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The International Monetary Fund says creditors may forgive part of Somalia’s outstanding $5.3 billion 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 may lead to fresh funding, Thiam said in an interview Feb. 17 in Nairobi, the capital of neighboring Kenya.