Puntland has asked the World Bank and the International Monetary Fund (IMF) to suspend and postpone Somalia’s debt relief, while an agreement is reached on Somalia’s government building system.
The finance minister of Puntland, Mohamed Abdirahman Dhabancad, who gave an interview to BBC Somali, said that the way in which the debt forgiveness is going on now poses a threat to the stability of Somalia, and the assistance provided by international organizations to Somalia.
The minister expressed concern about the economy following the debt relief, saying it could lead the country back to civil war. He pointed out that while Somalia agrees on the unification of finance and the distribution of the country’s resources, there is a need to suspend Somalia’s debt forgiveness.
“If the IMF and the World Bank say today that we have given the country debt relief, and 2 billion dollars are taken and brought into Somalia, the grants or donations that the world has been giving stop, what will it do to the GPD of the country and the economy? the country. We want the country to have an agreement first,” said the finance minister.
Puntland’s request has come at the right time, as in September of this year it is expected to come out partially as a result of Somalia’s debt forgiveness. Somalia’s finance minister has already said that the dispute between Puntland and the federal government has no effect on the issue of debt relief.
