Somalia's foreign debt

[Deeq A.]

The Somali Prime Minister HE Hassan Ali Kheyre alluded to Somalia’s international debts of $5 Billion as an impediment to continued progress if Somalia does not fulfill its international obligation to creditors

[Dahireeto]

When did we borrow 5 billion? That must be a mistake. 

[galbeedi]

Almost all the debt was accumulated between 1978-1991 while the country was collapsing. Actually in 1978, Somalia had about $450 million dollars of debt. 

 

In 1969, before the Kacaan, Somalia had huge foreign reserve with strong Somali Shilling. The civilian government used grants and very small loans to build  infrastructure, military and public projects. In fact most of their loans were from the former socialist countries who later years canceled the debt.. Even as early as 1981, the exchange rate for the dollar was 6 Shillings, then in 1983, the IMF came and forced deregulation and devaluation of the Somali Shilling in order to boost exports. Five years later in 1988, the bank rate was $1=85 Shilling, while in the black market the rate was almost 150. 

 

In My book, IMF means inflation , debt and corruption by the rulers. Lacagta ay wadaan jeebab qaldan ayey ku dhacdaa. 

 

By the way, does any one knows that Hassan Sheekh borrowed any money from World Bank or others?.

 

we have to watch the IMF. They  keep saying that Somalia must start paying their dues in order to access foreign loan. On the other hand for years they were objecting the reissuing of Somali bank notes to stabilize the economy and eliminate the fake money circulating. At this stage, other than grants, Somalia should never borrow money for government operations.

 

The finance minister said two months ago that rather  than print the money by other agencies,  they were doing it through the IMF and will be in circulation in late February, 2018, will see.

 

 

 

 

 

 

 

 

 

 

[maakhiri1]

5 billion is nothing, if government  put few millions in bitcoin 3 years ago, would have paid this.

 

It is nothing, considering, I believe they write off the interest, else would have been 100 Billion.

 

Some countries, like Argentine, Mexico, will not be able to pay their debt in next 300 years.

 

 

[Mooge]

this money should be forgiven by the bloodsuckers. we don't have any money niyoow and our country was destroyed thanks to the europeans colonizing, dividing, arming and aid-addicting somalia niyoow. somali government must not pay penny of this fake debt niyoow. there is nothing in the country that we can see niyoow to say the money did something. 

 

 

[galbeedi]

Mooge waa runtaa lacagtaa anagu maynaan arag. They divided among the crooks.

 

Maakhiri,

 

You right ,Compare to other countries it is small. Nowadays, modern nations borrow huge money for infrastructure and capital expenditure. They use the money for ports, airports, eight lane highways and life sustaining projects. That kind of debt is acceptable. The highway you build today will be used by your grand children. Or even if necessary procure arms for the defence of the nation.

 

I would borrow a billion to build roads that connect the nation and improve trade and mixing of the people.

 

O the other hand no government should never borrow money for government operation. That kind of aid goes to the drain and to the pockets of donors and corrupt officals.

 

 

 

[Dahireeto]

The International Monetary Fund says creditors may forgive part of Somalia’s outstanding $5.3 billion debt if the strife-torn Horn of Africa state takes concrete steps toward reforming its economy and improving governance.

 

https://www.bloomberg.com/news/articles/2017-02-19/imf-to-help-somalia-print-first-banknotes-in-a-quarter-century

[Holac]

^^ There you have it.  "if .... and only if ...

[maakhiri1]

Waw they will write off