THE International Monetary Fund said Friday it would provide an oversight programme for Somalia to help bolster the recovery of the country’s war-devastated economy.
“Somalia is recovering slowly from nearly 25 years of civil war. Weak institutional capacity, complex clan politics, and a challenging security situation have complicated the country’s economic reconstruction,” the IMF said in a statement.
The IMF said it agreed to a request from the Somali authorities for a staff-monitored programme that will include helping the impoverished east African country restore macroeconomic stability, rebuild institutions and improve governance and economic statistics.
“Given Somalia’s weak administrative capacity, technical assistance is an integral part” of the programme, it said.
Among the programme’s objectives will be to try and keep the government’s budget balanced without piling up unpaid domestic obligations. The country already has a large level of unpaid external debt, including to the IMF.
Other areas include currency reform and a stronger framework to fight money laundering and the financing of terrorism.
The country intends to print new official bank notes that will circulate alongside dollars by early next year as the government seeks to replace counterfeit currency and promote commerce in an economy ravaged by civil war.