The Executive Board of the International Monetary Fund (IMF) completed the first review of the Extended Credit Facility (ECF) arrangement for Somalia. The Board’s decision enables the immediate disbursement of SDR 7.5 million (about US$ 10 million), which will be channeled for budget support, bringing Somalia’s total disbursement under the Extended Credit Facility (ECF) to SDR 37.5 million (about US$ 50 million). 

Somalia’s ECF arrangement was originally approved by the Executive Board on December 19, 2023. The program supports the authorities’ reform strategy, after achieving the completion point under the Heavily Indebted Poor Countries (HIPC) initiative, to further strengthen key economic institutions and promote macroeconomic stability and growth. This is in line with Somalia’s national development plan and the government’s long-term vision to maintain economic stability, strengthen revenues and public financial management, promote financial deepening, improve governance, and enhance statistics. (Press Release)

Nature-based solutions present a unique way for Africa to accelerate the implementation of the SDGs and Agenda 2063 while contributing to the conservation of continent’s rich biodiversity, promoting ecological connectivity, and enhancing climate resilience, said Antonio Pedro, Deputy Executive Secretary, the Economic Commission for Africa (ECA), today at the African Natural Capital Alliance Annual Summit held in Nairobi, Kenya.

Speaking leaders in the financial markets sector, Mr. Pedro said, “With careful design of its development pathway, Africa can harness the value of its natural resources through responsible management practices that recognize planetary boundaries and balance economic growth with environmental conservation and social equity, beyond GDP metrics.”

Referencing a study by the ECA and Dalberg, Mr. Pedro said Africa could mobilize $82 billion per annum if the price of carbon reached $120 per tonne of CO2. However, there is a need to eliminate market fragmentation and invest in building high integrity carbon credit markets. (Press Release)

Amid historic levels of crippling global debt, the Open Budget Survey finds that countries are not sufficiently transparent and accountable about how they are managing their debt or spending on important social sectors, like health, sanitation and other services.

“Despite modest gains in this latest Open Budget Survey round, governments are not providing enough information and opportunities for engagement on how they are managing debt and executing budgets in later stages of the budget process. These are two key areas that impact whether governments can effectively deliver reliable, quality healthcare, sanitation, and other public services,” said Austin Ndiokwelu, Director of Policy and Global Advocacy at the International Budget Partnership.

This latest round of the survey found a modest one-point increase in global budget transparency scores compared to the previous round. Nevertheless, regional trends show two stories—one of sustained progress and one of downward peril. (Press Release)

A government bond is a debt security issued by a government to support government spending and obligations. Government bonds can pay periodic interest payments called coupon payments. Government bonds issued by national governments are often considered low-risk investments since the issuing government backs them.

Government bonds issued by a federal government may also be known as sovereign debt.