Somalia marked a significant moment in Mogadishu as the government celebrated following the announcement from the IMF and World Bank about granting $4.5 billion in debt relief for the country.
Prime Minister Hamza Abdi Barre highlighted that this relief equates to “relieving every Somali person of a debt of more than $300″.
He expressed, “It is a testament that our country and our people are financially viable, attracting foreign investment, and we are no longer debt-ridden.”
The debt forgiveness falls under the Heavily Indebted Poor Countries (HIPC) program, designed in 1996 to aid struggling nations burdened by insurmountable debt.
This $4.5 billion debt relief encompasses pardons from various multilateral, bilateral, and commercial creditors.
According to a joint statement by the institutions, Somalia’s external debt plummeted from 64% of GDP in 2018 to less than 6% of GDP by the end of 2023.
Barre emphasized the monumental nature of this relief, foreseeing opportunities for Somalia to channel resources into development initiatives, rejuvenate the economy, and gain access to international lending institutions.
Source-BBC
