By George Mwangi
Somalilandsun–Somalia is currently ineligible to borrow from the International Monetary Fund due to its outstanding arrears, which amount to $352 million, the global fund said in a statement Saturday.
Somalia, an IMF member since August 1962, has been in a state of civil war since the early 1990s, and there was no government with which the Fund could deal, the IMF said.
However, IMF said on Friday that it recognized the Federal Government of Somalia, headed by President Hassan Sheikh Mohamud, paving the way for the resumption of relations after a 22-year interval.
“The decision is consistent with broad international support and recognition of the Federal Government,” the IMF said. “Recognition of the government allows the IMF to offer Somalia technical assistance and policy advice.”
Somali central government broke down in 1991 and large part of its have been carved up by rival militia forces who have development autonomous regions. Since September 2012, a new United Nations-backed government headed by President Sheikh Mohamud, took office, ending eight years transitional rule by a corruption-ridded administration “The new administration has since enjoyed considerable support, including from the United Nations, the African Union, the European Union, the Organization of Islamic Cooperation, and many IMF member countries,” the IMF said.
Source: Dow Jones Newswires