Summary:Since 2012, Somalia has been recovering slowly from nearly 25 years of civil war. Weak institutional capacity, complex clan politics, and a challenging security situation have complicated economic reconstruction. As a result, social and economic conditions remain dire. The Federal Government of Somalia has initiated important reforms to lay the foundation for the country’s economic reconstruction. The authorities have also been engaging with the Fund since April 2013. IMF Executive Directors concluded the first Article IV consultation in more than 25 years in July 2015. To help Somalia’s economic reconstruction efforts and establish a policy implementation track record as an important step toward an eventual fund arrangement, the authorities have requested an IMF staff-monitored program (SMP). This SMP is guided by the conclusions of the July 2015 Article IV consultation.
