The International Monetary Fund (IMF) has restored its relations with Somalia for the first time since the fall of former regime in 1991. The restoration of relation came after talks with the general director of Central Bank of Somalia in Washington.
Despite resumption of normal relations the IMF is not going to give any financial assistance to Somalia until Somalia pays back all the debts it owes to IMF. Somalia is heavily indebted to IMF and it’s not likely to clear it in the coming years.
Speaking to local radios the director general of Central bank of Somalia stated that they will ask the IMF for their debt to be written off; a move if accepted by the IMF will pave the way for receiving considerable financial package from the International monetary fund.
Somalia has been in chaos for two decades and has no stable economy. The country’s infrastructure has been severely damaged by the civil war that ensued the fall of Siad Barre in 1991. Somalia is in need of heavy investment into its infrastructure to enable the country’s economy to thrive again.
RBC Radio
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