MOGADISHU (Halbeeg News) – Somali Prime Minister, Hassan Ali Kheire has met with Norwegian Finance Minister barely a week after her country pledged financial support for Somalia.
At the sidelines of World Bank and IMF meetings, PM Kheire and Norway’s Finance Minister Siv Jensen discussed the bilateral relations and Norway’s support.
In a statement, PM Kheire appreciated the minister for both her and her country’s commitment to supporting the Horn of Africa nation.
“Glad to get an opportunity to meet with Norway’s Finance Minister Siv Jensen, and express Somalia’s appreciation for Norway’s contribution towards a bridge loan of 359 million to clear our debt with the WB, the first step towards arrears clearance and Decision Point In Feb 2020,” he said.
The development comes as Norway pledged that it will provide a $359 million bridging loan to Somalia next year to clear the debt owed to the World Bank’s International Development Association.
The Norwegian government said in a statement it is proposing a short term loan of NOK 3.135 billion next year which will clear the arrears due to the World Bank.
“Technically, this is a loan to Somalia, but the funds will be transferred to a World Bank account. The World Bank will then grant Somalia a new loan, which will be used immediately to repay the bridging loan from Norway,” the statement read in part.
Somalia’s debt to Norway amounts to NOK 16 million but this amount, Norway said, will be canceled if Somalia’s other debtors commit to writing off their debts to Somalia.
Somalia’s external debt amounts to approximately USD 4.7 billion and the country has been struggling to clear this debt through the Heavily Indebted Poor Countries (HIPC) initiative which grants debt relief to heavily indebted countries under a stringent framework.
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