JidbaaleThe Somali Finance Minister, Bihi Iman Egeh, signed a debt relief deal with Steen Sonne Aderson, Denmark’s Ambassador to Somalia, in Mogadishu on Monday.
The accord builds upon the results of the Paris Club discussions in March 2024, signifying another milestone in Somalia’s economic reform trajectory.
The benefits of Somalia’s national reform initiative and debt reduction accomplishments are becoming evident. The ministry expressed gratitude to the Danish government, an esteemed collaborator in Somalia’s sustainable development.
In March, the Paris Club, an assembly of the globe’s most affluent creditor countries, declared the annulment of 99% of Somalia’s debt. Principal members, including the United States, Japan, and Russia, jointly annulled approximately $2 billion in debt.
In early November, the United States annulled $1.1 billion in outstanding debts, constituting almost one-fourth of the nation’s remaining debt. Somalia has declared a $100 million debt forgiveness accord with Japan, contributing to its continuous reform and debt alleviation initiatives.
The Horn of Africa country has just finalized a debt forgiveness program administered by the International Monetary Fund (IMF) and the World Bank. As a consequence, Somalia became eligible for nearly $4.5 billion in debt relief from its creditors, a key step toward restoring financial stability and encouraging sustainable growth.
