Somalia’s government has asked the International Monetary Fund (IMF) to extend its financial support by three months to Aug. 17, reported Reuters.
In February, the IMF had warned that a delay in Somalia’s legislative and presidential elections put the renewal of the three-year $400 million budget support programme at risk of automatic expiration this month.
On Thursday, Somalia’s parliamentary committee on Thursday announced the country will hold the long-awaited presidential election on Sunday, May 15.
Laura Jaramillo, IMF’s mission head, Somalia’s government has written to the IMF’s board asking for more time to hold talks on the budget support programme’s renewal.
“The extension is expected to provide the time needed to confirm policy understandings with the new government after presidential elections are completed,” she said.
She did not say anything about whether the automatic expiration of the programme will be extended. The conclusion of negotiations for a 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.
The announcement of the presidential election, which is already 15 months behind schedule, comes after Somalia concluded parliamentary elections in April. More than a dozen candidates are expected to compete.
Mohamed Abdullahi Mohamed, also popularly known as Farmajo, whose term in office officially ended on February 8, 2021, has been under pressure after the election date passed without resolution of issues related to how the vote would have been conducted in Somalia.
Last year, Farmajo attempted to extend his term for two years by decree, resulting in violent street battles in the capital, Mogadishu, as rival factions clashed. He appointed Prime Minister Mohamed Hussein Roble to seek consensus on a way forward following international pressure.
But, deadly violence and a feud between Somalia’s president and prime minister slowed down the voting process.
