Puntland Opposes Loans from Donors to Somalia

Garowe (PP News Desk) — Puntland State Minister for Planning Mohamed Saeed Farole yesterday clarified the position of Puntland on a plan by the Federal Government of Somalia to secure loans from multilateral agencies and donor countries. “Puntland does not support the initiative to borrow money from multilateral agencies in the name of Somalia. The initiative will make Somali children more indebted to creditors” said Mohamed.

The leaders of the Federal Government of Somalia, using the legitimacy of the new dispensation in the eyes of the International Community, aim to borrow money from donor countries and Bretton Woods institutions despite the stalled debt relief initiative for Somalia.

Mohamed Saeed Farole: “Puntland does not support the initiative to borrow money from multilateral agencies in the name of Somalia to make Somali children more indebted to creditors.”

Last week, President Hassan Sheikh Mohamud said that his government was committed to exploiting “national resources”. Somalia is country whose federal institutions are protected by ATMIS under the Chapter Seven Article of the United Nations Charter applied to a country that cannot guarantee security of its territory. The predatory policies of donors come to light when a loan is extended a war-torn, highly indebted country.

“Puntland State will write to potential creditors to challenge the plot to use the legitimacy of Somalia’s fragile institutions to make our country more indebted. Any loan extended to Somalia will not count as a sovereign debt under the present conditions” said a senior economist in Boosaaso.

© Puntland Post, 2023