MOGADISHU (SD) -The IMF’s executive board has officially approved a new loan of $100 million for Somalia.

This new debt is crucial for ongoing progress, addressing the completion of Somalia’s debt relief, and the enhancement of vital economic institutions.

The IMF emphasized the financial and overall support from international partners being provided to Somalia, stating that it is essential to sustain efforts in the economic recovery of Somalia.

“The program will support the authorities’ post-HIPC reform strategy to further strengthen key economic institutions and promote macroeconomic stability and growth, in line with Somalia’s national development plan and the government’s long-term vision. Reform implementation will be accompanied by extensive IMF capacity development assistance, supported by the Somalia Country Fund.” the IMF said in a statement.

The IMF had announced in November that a tentative agreement had been reached with the Somali government, outlining the provision of $100 million in financial support as part of the government’s budget.

The decision of the IMF’s Executive Board comes after recent news that Somalia successfully completed its highest debt cancellation, providing a positive outlook for the country’s economic prospects.