Somalia wants 3 month extension of IMF support programme

Somalia has asked the International Monetary Fund (IMF) to extend its financial support by three months to August 17, the head of the IMF’s country mission told Reuters.

The funds warned earlier in February that Somalia’s delayed legislative and presidential elections put the renewal of the three-year budget support programme, worth nearly $400 million, at risk of automatic expiration this month.

However, Somalia has set the presidential election, carried out by lawmakers, to May 15.

The government has written to the IMF’s board asking for more time to conclude talks on the budget support programme’s renewal, IMF’s mission head, Laura Jaramillo said.

“The extension is expected to provide the time needed to confirm policy understandings with the new government after presidential elections are completed,” she said.

Jaramillo made no comment on whether the automatic expiration of the programme will be extended.

The conclusion of negotiations for the renewal of the programme is also a required part of a deal to slash Somalia’s debt from more than $5 billion to around a 10th of that.