LONDON (AP) Somali money transfer service Dahabshiil has won extra time to prevent Barclays bank from pulling the plug on its remittance operations, winning an interim injunction Tuesday that preserves a financial lifeline for the Horn of Africa nation.
The ruling was welcomed by academics, aid workers, and the Somali government, which has warned that millions of ordinary people could see their incomes take a hit if the decision to cut Dahabshiil loose went through.
"These remittances remain an essential source of income for more than half of all Somalis," Prime Minister Abdi Farah Shirdon said in a statement, urging both sides to come to an understanding that would preserve the money transfer service.
Britain has more than 100,000 Somali-born residents, according to recent census figures, and experts say the estimated 100 million pounds ($160 million) worth of remittances they send home annually are critical to propping up Somalia's economy, still struggling to emerge from two decades of anarchy. One estimate puts the global total of Somalia-bound remittances at $1.3 billion a year.
Barclays, which runs Dahabshiil's accounts, faces its own concerns. Several major banks have recently been hit with huge penalties over money-laundering failures, and Barclays said its decision to break with Dahabshiil was part of a company-wide move to insulate it from legal risk.
