Somalia: Enhanced Heavily Indebted Poor Countries (HIPC) Initiative-Decision Point Document

March 26, 2020

Preview Citation

Format: Chicago

Somalia: Enhanced Heavily Indebted Poor Countries (HIPC) Initiative-Decision Point Document, (USA: International Monetary Fund, 2020) accessed December 21, 2024

Summary

This paper presents an assessment of Somalia’s eligibility for assistance under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative. The macroeconomic framework reflects the policy framework underlying the proposed three-year Fund-supported program. The debt relief analysis (DRA) remains largely unchanged, but some of the underlying debt data has been updated to reflect new information from creditors. In addition, this paper presents an assessment of debt management capacity in Somalia and a full Debt Sustainability Analysis under the Debt Sustainability Framework for Low-Income Countries. The DRA reveals that, after traditional debt relief mechanisms are applied, Somalia’s debt burden expressed as the net present value of debt-to-exports ratio is 344.2 percent at the end of December 2018—significantly above the HIPC Initiative threshold. Despite the challenging environment, progress on reform and policy implementation has been good and sustained reforms have translated into economic results. In addition to the coordinated support from the World Bank and the IMF, reforms have been supported by other development partners.

Subject: Arrears, Asset and liability management, Debt relief, Debt service, External debt, Public debt

Keywords: Arrears, Arrears clearance, Burden indicator, CR, Debt, Debt relief, Debt service, Government, HIPC Completion point, HIPC debt relief analysis, HIPC decision point, IMF in Washington, ISCR, MDRI debt relief from IDA, Somalia

Publication Details

Pages:

68
Volume:

---
DOI:

---
Issue:

---
Series:

Country Report No. 2020/086
Stock No:

1SOMEA2020003
ISBN:

9781513538327
ISSN:

1934-7685

FACTSHEETS

RESOURCES

TOPICS

Flagship Publications

Other Publications

IMF reports and publications by country

Regional Offices

All News

See Also

For Journalists

Press Center

RESOURCES

FLAGSHIPS

KEY SERIES

IMF NOTES

IMF Staff Country Reports