Somalia’s authorities announced the launch of the National Payment System. For the first time since 1991, financial institutions will earn in one of the most unstable countries of the world. It is reported by TV channel Al-Jazeera.
“From now on, 13 banks Somalia will be able to interact with each other, to connect to the clearing and settlement system of the Central Bank and to carry out the whole range of financial transactions, the impact of these measures on the economy would be unprecedented,” – said the director of the Central Bank of Somalia Abdurrahman Abdullah
Somalia is trying to cope with the consequences of the Civil War. Last year, an agreement was reached with the World Bank and the International Monetary Fund (IMF) to write off the country’s debts. Thanks to the settlement of financial issues with the World Bank, in July 2021, Visa cards earned in the country. At the moment, negotiations are continuing with the remaining creditors, the amount of debts to which the order of $ 4.5 billion.
The creation of a single payment system will allow the country to start production of local credit and debit cards, to run a job Internet banking and ATMs. After reaching agreements with international financial institutions and recreate a unified payment system, the government plans to resume emission of money.
Since the collapse of a single state in 1991, the release of new money was stopped in Somalia. For this reason, people have to pay any old money, which in 30 years turned into dirty scraps of paper, or for non-cash dollars. The government of the country hopes to resume the issuance of Somali shillings in 2021. It is expected that the country’s annual GDP will grow by 2.9 percent.