IMFrecognizes Somalia’s new government after a 22-year break
The International Monetary Fund (IMF) recognized Somalia’s new government after a 22 year break in relations with the once disorderly nation. This move came as a result of a general push by the US, UN and the West toward promoting rehabilitation there.
- The U.S. officially acknowledged the African nation’s new government in January 2013, the first time the U.S. had acknowledged a Somali government since 1991, when warlords overturned longtime authoritarian Siad Barre and then turned on one another.
- In 2012, the U.N. Security Council voted nem con to partly freeze an arms embargo on Somalia for 12 months for military equipment intended exclusively to train the nation’s security forces and furnish protection for the Somali people.
- In early April 2013, President Barack Obama authorized the U.S. to arm and train Somali forces.
- The IMF declared it was acknowledging the Somali government of President Hassan Sheikh Mohamud, who took office in September 2012.
How this move will benefit Somalia?
- The move will permit the IMF to extend Somalia technical aid and policy advice.
- But as per the IMF announcement, Somalia will still not be able to borrow IMF funds until it pays back some $352 million behindhand that it owes to IMF.