Creditors May Write Off Debt If Stability Is Forthcoming In Somalia

The International Monetary Fund says creditors may forgive part of Somalia's outstanding $5.3 billion debt. This is however contingent on the nation taking concrete steps toward reforming its economy and improving governance. An arrears-clearance plan, a new currency, an effective monetary policy and a solid track record on good governance may lead to fresh funding. The IMF is backing the reintroduction of new Somali shilling notes that may come into circulation this year alongside the dollar. The IMF is also assisting the central bank with regulation and supervision of the financial sector to open it up to new investors.