Today the Ministry of Finance of Somalia approved the transfer of a payment of $11.7 million to Somaliland after the Somali Prime Minister ordered the release of the funds to Somaliland following the disastrous Hargeisa market Fire last week. The budget support was allocated to Somaliland as part of the World Bank’s assistance to the Somali government during the COVID-19 pandemic. The amounts were determined based on the reported fiscal gaps by all the Federal member states of Somalia and then distributed accordingly by the Ministry of Finance through Somalia’s Central Bank.
Somaliland provided its fiscal gap from the COVID-19 economic impact to the Somali Federal government through the World Bank. However, it later refused to comply with the conditions of disbursement, which included requesting the money in writing directly from the Somali Federal Ministry of Finance and reporting back on its use to the same Ministry. This stalemate was why the allocation for Somaliland remained in the Somali Central Bank until today, when it was approved for transfer.
It is unknown whether the same reporting conditions for Somaliland that led the money to be withheld remain in place.
