IMF Grants Somalia USD 10 Mln To Fight Poverty

(MENAFN- Kuwait News Agency (KUNA)) WASHINGTON, Dec 11 (KUNA) -- The International Monetary Fund (IMF) approved about USD 10 million as aid to Somalia to fight poverty and achieve development.
In a statement late Tuesday, the IMF said that this brings Somalia's total disbursement under the Extended Credit Facility (ECF) to about USD 60 million)
The IMF expects Somalia's Real GDP growth projections to grow by four percent for 2024 and 2025, based on strong exports and remittances. However, risks remain elevated, including from regional and domestic security developments, commodity prices and climate shocks, it added.
Inflation is expected to continue on a downward trend to 4.5 percent by end 2024, although the pace is slower than anticipated earlier, IMF said.
Despite security challenges, the Somali government remains steadfast in its fight against terrorism and continues to work with international partners to ensure a successful transition from the current African Union Transition Mission to a new force by January 2025. Near-term risks to the outlook include climate shocks, both domestic and regional, it added.
Somalia's ECF arrangement was originally approved by the Executive Board on December 19, 2023 for about USD 100 million. The program supports the authorities' reform strategy, after achieving the completion point under the Heavily Indebted Poor Countries (HIPC) Initiative, to further strengthen key economic institutions and promote macroeconomic stability and growth. (end)
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