International Monetary Fund (IMF) has granted Somalia $970,000 additional interim assistance on lapse time basis under the enhanced Heavily Indebted Poor Countries (HIPC) initiative.

This will cover Somalia’s debt service obligations for March 25, 2021 through to March 24, 2022.

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.

IMF said that the Executive Board on March 25 last year approved Somalia had reached HIPC Decision Point. He Board approved three-year arrangements under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF)

The Board also approved interim assistance of about $1.5 million for March 25, 2020 to March 24, 2021. The first ECF review was completed on November 18, 2020.

Performance under the ECF-supported programme has been satisfactory and Somalia continues to make progress on debt rescheduling and other reforms needed to reach the HIPC Completion Point.