Tuesday 19,Nov, 2024 {HMC} Somali Finance Minister Bihi Iman Egeh signed a debt relief agreement with Denmark’s Ambassador to Somalia, Steen Sonne Aderson, in Mogadishu on Monday.
The agreement builds on the outcomes of the Paris Club negotiations in March 2024, marking another milestone in Somalia’s economic reform journey.
“The fruits of Somalia’s national reform program and debt relief achievements are being realized. We are grateful to the Danish government, a valuable partner in Somalia’s sustainable development,” the ministry said.
In March, the Paris Club, a group of the world’s wealthiest creditor nations, announced the cancellation of 99% of Somalia’s debt. Key members, including the United States, Japan, and Russia, collectively forgave over $2 billion in debt.
Earlier in November, the United States cancelled $1.1 billion in outstanding loans, representing about a quarter of the country’s remaining debt. Also, Somalia announced a $100 million debt forgiveness agreement with Japan last week as part of its ongoing reform and debt reduction efforts.
The Horn of Africa nation recently completed a debt forgiveness initiative overseen by the International Monetary Fund (IMF) and the World Bank. As a result, Somalia became eligible for over $4.5 billion in debt relief from its creditors, a crucial step toward restoring financial stability and fostering sustainable development.
Source Hiiraan online
