Puntland State appeals World Bank, IMF to suspend Somalia's debt relief

By Dawan Africa - Reporter

Puntland State has on Thursday appealed to the World Bank and the International Monetary Fund (IMF) to suspend the debt relief program for Somalia until an agreement is reached on the country's state-building system.

The State's Minister of Finance, Mohamed Abdirahman Dhabana'ad has expressed concerns about the current process of debt forgiveness, emphasizing that it poses a threat to Somalia's stability and the assistance provided by international organizations.

"If the IMF and the World Bank declare today that the country has received debt relief and $2 billion is injected into Somalia, the grants or donations that the world has been providing will cease. This will have a severe impact on the country's GDP and economy. We should have a comprehensive agreement before proceeding with debt relief, he said.

Meanwhile, Somalia's Finance Minister, Dr. Elmi Mohamud Nur assured the public that the ongoing dispute between Puntland State and the Federal Government would not hinder the debt relief process. However, he acknowledged the need for a swift resolution to avoid any potential setbacks.

The quest for debt relief has been a long journey for Somalia, with the Government tirelessly working towards securing support from international institutions like the World Bank and the IMF. This latest appeal by Puntland State sheds light on the significant challenges to achieving unity within the Somali Government's pursuit of debt relief.

Last week, the United Nations Council called on the Somali Federal Government to intervene in the political tensions within Puntland State and work towards deescalating conflicts that have been affecting the region.