Program assistance approval document for Somalia FY 1985 commodity import program (649-0125)

Despite a severe economic situation resulting from a serious drought and a Saudi ban on cattle imports, the GOS has diligently adhered to stringent economic reform measures developed by the IMF and has performed admirably in implementing the 1983 CIP. In support of the IMF stabilization program, this $30 million grant from FY85 Economic Support Funds will provide foreign exchange for balance of payments relief while economic reforms directed at increasing the role of the private sector take effect. A full 85% of foreign exchange will support the private sector, especially in the procurement of commodities (including small, light, industrial equipment) to be used primarily in strengthening the agricultural sector. A portion of local currency generations, which will be deposited in a special account in the Central Bank of Somalia, will be used to rehabilitate the Kismayo port and to strengthen the lending capacity of the Somali Development Bank to provide credit to the private (particularly agricultural) sector.