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Somalia and the IMF

Somalia joined the IMF on 31 August 1962. After almost three decades cut off by unpaid debts, it cleared its IMF arrears on 25 March 2020 and reached the HIPC completion point on 13 December 2023, cutting its foreign debt from US$5.3 billion to US$0.6 billion. A three-year Extended Credit Facility of SDR 105 million runs to 18 December 2026.

Last checked 2026-11-13 10 sources Reading time: 7 min

How do Somalia and the IMF relate today?

Somalia is in the third year of an Extended Credit Facility (ECF), a low-interest IMF loan tied to reforms. The arrangement started on 19 December 2023 and expires on 18 December 2026. It was agreed at SDR 105 million, of which SDR 75 million had been drawn by 31 October 2026 (IMF, Somalia: history of lending commitments, 31 October 2026).

The IMF's fourth review of the programme was concluded in December 2025 (World Bank, Somalia overview). Somalia owed the IMF SDR 117 million at 31 March 2026 (IMF, Somalia country page).

The IMF's resident representative for Somalia is Jehann Jack, based in Nairobi (IMF, Resident Representative for Somalia).

When did Somalia join the IMF?

Somalia became a member on 31 August 1962 (IMF, Resident Representative for Somalia). Its quota, the share that sets its voting power and borrowing limits, is SDR 163.4 million (IMF, Somalia country page).

What has Somalia borrowed from the IMF?

Somalia has had 16 IMF arrangements since joining (IMF, Somalia country page). All amounts below are in special drawing rights (SDR), the IMF's unit of account (IMF, history of lending commitments):

  • 1964 to 1970: seven one-year stand-by arrangements, from SDR 2.8 million to SDR 7 million each. Somalia drew on four of them.
  • 27 February 1980: stand-by of SDR 11.5 million; SDR 6 million drawn.
  • 15 July 1981: stand-by of SDR 43.13 million, fully drawn.
  • 15 July 1982: stand-by of SDR 60 million, fully drawn.
  • 22 February 1985: stand-by of SDR 20.1 million, fully drawn.
  • 29 June 1987: stand-by of SDR 33.15 million (SDR 5.53 million drawn) and a Structural Adjustment Facility of SDR 30.94 million (SDR 8.84 million drawn). These were the last before the state collapsed in 1991.
  • 25 March 2020: Extended Fund Facility of SDR 39.568 million, drawn at once, and an ECF of SDR 252.862 million, fully drawn by 15 December 2023.
  • 19 December 2023: the current ECF, now SDR 105 million.

In all, Somalia has been promised SDR 631.33 million and has drawn SDR 529.03 million (IMF, history of lending commitments).

How did the arrears and debt relief work?

Somalia was outside the international financial system for 30 years (World Bank, 25 March 2020). Before re-borrowing, it had to clear its arrears.

From 2016 Somalia ran four Staff-Monitored Programmes in a row. These are IMF-watched reform plans with no money attached (IMF, Key questions on Somalia).

In March 2020 the arrears were cleared with bridge loans from donor countries (World Bank, 25 March 2020):

  • World Bank (IDA): cleared on 5 March 2020 with a bridge loan from Norway.
  • African Development Bank: cleared on 5 March 2020 with bridge financing from the United Kingdom and a contribution from the EU.
  • IMF: cleared on 25 March 2020 with a bridge loan from Italy, repaid from the first drawing under the new IMF programme.

More than 100 countries gave resources used to clear Somalia's debt to the IMF (IMF, Key questions on Somalia).

The two milestones under the Heavily Indebted Poor Countries (HIPC) Initiative were:

  • Decision point, 25 March 2020: the IMF and World Bank found Somalia eligible, the 37th country to reach this stage. Its debt was about US$5.2 billion at end-2018, 110.7% of GDP in present-value terms (World Bank, 25 March 2020).
  • Completion point, 13 December 2023: the IMF board met on 13 December and the World Bank's IDA board on 12 December. Somalia had carried out 13 of its 14 reform triggers (IMF press release 23/438, 13 December 2023).

The relief cut external public debt from US$5.3 billion at end-2018 to US$0.6 billion at end-2023, from 64% of GDP to under 6% (IMF, Key questions on Somalia). Total debt-service savings were US$4.5 billion (IMF press release 23/438):

  • IMF: US$343.2 million, plus US$164.3 million of relief beyond HIPC.
  • World Bank (IDA): US$448.5 million.
  • African Development Fund: US$131.0 million.
  • Other multilateral lenders: US$573.1 million.
  • Bilateral and commercial lenders: US$3.0 billion, including Paris Club members and the Arab Coordination Group.

For what Somalia still owes and to whom, see Debt and debt relief.

What did the 2020 to 2023 programme involve?

The 2020 package was a three-year blend of an Extended Fund Facility (SDR 39.57 million, 24% of quota) and an ECF (SDR 252.86 million, 155% of quota) (IMF press release 23/437, 13 December 2023). It ran for 45 months (IMF, Key questions on Somalia).

The sixth and last review was concluded on 13 December 2023 with a payment of SDR 7 million. That brought the total paid under the 2020 package to SDR 292.43 million, about US$388.7 million (IMF press release 23/437).

Reforms listed by the IMF include steady macroeconomic policy, more pro-poor spending, more domestic revenue, stronger public financial management, better bank supervision, and a stronger Central Bank (IMF, Key questions on Somalia).

What does the current programme cover?

The new ECF was first approved on 19 December 2023 for SDR 75 million, about US$100 million (IMF Country Report No. 24/346, December 2024). It was later raised to SDR 105 million (IMF, history of lending commitments).

The programme has five aims: fiscal sustainability, more domestic revenue and better public financial management, a deeper financial sector, a better business climate and governance, and better statistics (IMF, Key questions on Somalia).

On 9 December 2024 the IMF board completed the second review and the 2024 Article IV consultation. This released SDR 7.5 million, bringing payments under the ECF to SDR 45 million, about US$60 million (IMF Country Report No. 24/346). The report projected real growth of 4% for 2024 and 2025 (IMF Country Report No. 24/346).

Who built the tie?

Does the IMF have an office in Somalia?

The resident representative office for Somalia is in Nairobi, Kenya (IMF, Resident Representative for Somalia). The IMF's training and technical help for Somalia is paid for through a Somalia Country Fund (IMF, Somalia country page). For other bodies working in the country, see International bodies in Somalia.

How does the IMF deal with Somaliland and the member states?

The IMF lends to the Federal Government of Somalia. Its programme targets cover the federal budget, the Central Bank and federal debt rules, such as the debt policy decree the prime minister issued on 15 July 2024 (IMF Country Report No. 24/346). For the money the states and Somaliland raise and spend, see Member states' money and Somaliland's economy.

Sources

  1. IMF, Somalia: history of lending commitments, 31 October 2026 · imf.org
  2. World Bank, Somalia overview · worldbank.org
  3. IMF, Somalia country page · imf.org
  4. IMF, Resident Representative for Somalia · imf.org
  5. World Bank, 25 March 2020 · worldbank.org
  6. IMF, Key questions on Somalia · imf.org
  7. IMF press release 23/438, 13 December 2023 · imf.org
  8. IMF press release 23/437, 13 December 2023 · imf.org
  9. IMF Country Report No. 24/346, December 2024 · imf.org
  10. IMF Country Report No. 24/346 · imf.org

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