Somalia News

 

"UNDP Helps Avert Shutdown of Somali Remittance Flows."

United Nations Development Programme

Source: www.allafrica.com

The United Nations Development Programme (UNDP) has helped Wells Fargo and Co. to delay their decision to close the accounts of Dahabsil, which is Somalia's largest remaining money transfer company. The UNDP is playing an influential role in helping Somali companies comply with international financial rules so that they can avoid closure.

Since the events of September 11th countries and international organizations have been constantly scrutinizing Somalia's money transferring companies. The United States Treasury has already frozen the funds of Al Barakat, one of Somalia's money transferring companies. The events of September 11th have had a dramatic impact on the economic situation of many Somalis. "...a slowdown of private sector investment and labour opportunities, reduction in construction and transport activities, and the loss of a major source of income to some poor households."

Somalia has faced economic turmoil since the overthrow of Barre's government 11 years ago. Since 1991 Somalia has been without any commercial banking or financial institutions. Somalia is economically fragile and would face more unrest if their monetary sources continue to be shut.

 

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