By Modupe Gbadeyanka
The European Union (EU) has contributed €1 million to the International Monetary Fund (IMF) Somalia Trust Fund as part of its long-standing commitment to support economic governance and capacity development in Somalia.
The EU support will contribute to normalizing relations with the International Financial Institutions (IFIs) and lay the groundwork for an eventual resumption of their financial assistance.
Somalia is currently ineligible to receive any IMF financial assistance given its $328 million in arrears with the Washington-based institution.
The Somalia Trust Fund is one of the tools which is supporting crucial reforms and helps Somalia in its efforts to build key economic institutions and develop its macroeconomic policies.
The Trust Fund intends to provide over USD 9 million worth of technical assistance and training up to 2018. The EU’s contribution provides further boost to the capacity of the trust fund and to the pace of the reforms.
‘After more than two decades, Somali people urgently need to see improvement in their everyday life. The IMF Somalia Trust Fund will support key economic and financial reforms and pave the way to normalizing relations with the International Financial Institutions and resuming financial assistance. A lot has been done already, and I hope the next Somali Government accelerates the pace of reforms’, said the EU Head of Delegation and Ambassador to Somalia Veronique Lorenzo.
The IMF recognised the current Somali government three years ago and concluded its first annual review of the country in more than 26 years in 2015.
