A Consultative Meeting On Somalia’s Finance Sector Concluded

A Consultative conference between Somali federal government and its member states on the country’s economic reform has concluded in the Ethiopian capital, Addis Ababa on Saturday.

The conference was attended by officials from International Monetary Fund (IMF), Somali Finance Minister, Abdirahman Duale Beileh and regional finance Ministers from the member states.

The officials discussed measures to strengthen public financial management reform, including expenditure control and minimizing the use of cash advances.

They also talked about improving domestic arrears management capacity; maintaining efforts toward achieving Treasury Single Account and continuing to make progress toward fiscal federalism.

During the conference, the sides noted that Somali authorities have made considerable progress in implementing steps to country’s economy.

Somali government and its member states agreed to put efforts to come up with sustain reform momentum to help long-term recovery and growth objectives.

Somali Finance Minister has lauded the conference saying the government’s commitment to continue improving the fiscal framework remains the same as it tries expanding efforts to recover the economy of the country.

“Pleased with the productive outcome of the SMP4 review & meeting with the Finance Ministers of the FMS of Somalia & Deputy Mayor of BRA yesterday. We’re all committed to working together for the benefit of the Somali people in economic & fiscal reforms. Stronger together,” he said.

Mid this week, the minister and officials from International Monetary Fund have held a meeting in Addis Ababa on staff-level agreement on a fourth Staff-Monitored Program (SMPIV).

The sides together with Somali Parliamentary Finance Committee have discussed legislative reforms which are crucial for fiscal reforms.

The fourth Staff-Monitored Program (SMPIV) is covering the period of May 2019—July 2020.

If SMPIV will be endorsed by the Executive Board as meeting the conditionality standard of an upper credit tranche (UCT) arrangement, putting Somalia more clearly on the path to debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.