IMF recognizes Somalia government

[Che -Guevara]

The International Monetary Fund recognized the Federal Government of Somalia Friday, ending a 22-year break in relations that could lead to IMF technical and policy support to the country.

 

"The International Monetary Fund today 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 IMF said in a statement.

 

"The decision is consistent with broad international support and recognition of the Federal Government."

 

Somalia has been an IMF member since 1962, but relations broke after the civil war of the early 1990s left the country with "no government with which the Fund could deal."

 

Mohamud's new government, which took office in September 2012, "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.

Somalia however still owes some $352 million to the Fund, and so is currently ineligible for any new financing.

 

http://za.news.yahoo.com/imf-recognizes-somalia-government-225338599.html

[Che -Guevara]

"Somalia however still owes some $352 million to the Fund"

 

Really?

[Xaaji Xunjuf]

Never trust these guys the reason why africa is poor is because of these guys

[Che -Guevara]

IMF recognizes Somali government, offers economic advice

 

WASHINGTON (Reuters) - The International Monetary Fund officially recognized the Somali government on Friday, ending a 22-year hiatus and allowing the Fund to provide economic policy advice to Somalia.

 

The move opens the way for donors and other development banks to resume relations with Somalia, whose economy is in tatters after more than two decades of conflict.

Donors are expected to meet officials from the World Bank and International Monetary Fund during meetings of world finance leaders in Washington next week.

 

"The decision is consistent with broad international support and recognition of the federal government," the IMF said in a statement. The IMF said, however, that it will not be able to approve lending to Somalia until the government clears $352 million (229.4 million pounds) in debt it owes to the IMF.

 

The United States has said it will work with the World Bank and the IMF to help Somalia clear the debt. The country also owes the World Bank about $250 million, which is preventing the institution from providing development aid to the government.

 

Major Western donors, including the United States, Britain and countries in Europe, have slowly been re-engaging with the Mogadishu government since the election of President Hassan Sheikh Mohamud last year. It was the first vote of its kind since warlords toppled military dictator Mohamed Siad Barre in 1991.

 

In subsequent years, al Qaeda-linked al Shabaab insurgents seized control of large swathes of the south and central parts of the country. An African Union force has had some success in driving the insurgents out of the capital.

 

(Reporting by Lesley Wroughton; Editing by Christopher Wilson and Paul Simao)

 

http://uk.news.yahoo.com/imf-recognizes-somali-government-offer-economic-advice-220146734.html#kgZqAsC

[Naxar Nugaaleed]

Somalia should ask for fresh start, its no longer the Somali republic, its now the Federal republic of Somalia FRS lol

[Che -Guevara]

They owe less than what I thought they did.

[Cambuulo iyo bun]

International MaFia yuur dhaha. Boob iyo privatisaion bey ujedaan

[Marksman]

Somalia's total external debt is about 2.2 billion dollars (some estimates are between 2 and 3 billion dollars). It's one of the lowest debt in the world. With careful planning the country can be debt free within years. Heck, the potential for one years of fishing equals to 2 billion dollars alone to put it in perspective.

 

I've read that other institutions are in early stages of writing off Somalia's debt, because it's so little. Link

 

It seems the international community and institutions are calculating that it's easier and cheaper to help create a stable Somalia, than let terrorism and piracy flourish. According to the World Bank it has costed the world 18 billion dollars annually, because of the piracy. Link

[Jacpher]

Che -Guevara;937621 wrote:

"Somalia however still owes some $352 million to the Fund"

 

Really?

It's called leverage. These guys and their cohorts in UN steal tons of funds every year appropriated to this poor nation. If my memory is right I read or heard somewhere that 57 billion dollars were spent in Somalia since the civil war. I highly doubt if 3% of that amount ever made it to the country.

[Che -Guevara]

IMF Recognizes the Federal Government of Somalia After 22-year Interval

Press Release No.13/119

April 12, 2013

 

The International Monetary Fund (IMF) today 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. Recognition of the government allows the IMF to offer Somalia technical assistance and policy advice.

 

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. In September 2012, a new Federal Government of Somalia, led by Federal President Hassan Sheikh Mohamud, took office. 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. Somalia is currently ineligible to borrow from the Fund due to its outstanding arrears, which currently amount to SDR 233.8 million (about US$352 million).

 

http://www.imf.org/external/np/sec/pr/2013/pr13119.htm

[SomaliPhilosopher]

We don't need the white mans recognition

[Naxar Nugaaleed]

yes we do lol

[Qaranki]

Che -Guevara;937621 wrote:

"Somalia however still owes some $352 million to the Fund"

 

Really?

As the article says "relations broke after the civil war in the 90s", meaning when there was last a recognised government - Barre's regime.

 

All the things people say Barre did that made the country 'great' or his government 'did' for the people, do you think that money came from thin air or fell down from trees? All those who governed from independence up until the collapse of Barre's regime in 91 consisted of begging for money from the IMF, the World Bank, or whatever superpower it was client to.

 

I read an article the other day which said the UN has assigned some lawyers for the Arab states which had leaders deposed so that they can go after all the money stashed away in bank accounts across the world, I think the Somalia government should ask for such assistance, you never know how much money could be out there, it'll help pay of that debt.

[Blessed]

Inay arimaha Somalida farta ku walaaqdaan ayay rabaan.

[Chimera]

Che -Guevara;937625 wrote:

The United States has said it will work with the World Bank and the IMF to help Somalia clear the debt. The country also owes the World Bank about $250 million, which is preventing the institution from providing development aid to the government.

Damn, we should have milked a 1000 km railway system out of these groups right before the war, and have the debt cancelled today lol.