Somali Federal Government has called for its creditors to cancel billions of dollars debts, in an…
Somali Federal Government has called for its creditors to cancel billions of dollars debts, in an effort to rebuild the country’s economy.
Mohamed Aden Fargeti, Somalia’s Minister of Finance said that they are cooperating with the International Monetary Fund (IMF) regarding the cancellation of the debts.
‘’We [Somalia] have a debt worth $5.4 billion and we are working on ways to be forgiven from that amount.’’
Moreover, he said, cancelling Somalia’s debt would provide countries with ‘long-term benefit, by offering them increased investment opportunities once the shackles on the country’s political and economic development are removed.’
Somalia, which has several times been top listed in the world’s most failed and corrupted states, is recovering from two decades of civil war.
Since the Central government was overthrown in 1991, the country’s infrastructure and human capital has been destroyed massively. The economy—which primarily relies on subsistence agriculture and fishing—is still held back in its development by the fractured nature of the country and the poorly developed infrastructure.
In 2013, the International Monetary Fund (IMF) recognised the Federal government of Somalia, paving the way for the resumption of relations.
Economic activity is estimated to have expanded by 3.7 percent in 2014, driven by growth in agriculture, construction, and telecommunications, IMF said in a recent report on Somalia’s economy revival.
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