Mogadishu, (Halbeeg News) – The United States has agreed to a $1.14 Billion debt forgiveness boosting Somalia’s efforts towards economic stability and rebuilding essential public services.
The announcement was made on Tuesday by U.S Ambassador to Somalia Richard Riley in Mogadishu who stated that the move was a clear indicator of the United States of America’s commitment to assist Somalia achieve a brighter future.
“This debt forgiveness is a testament to our unwavering commitment to support the Somali people on their journey toward a brighter future,” Riley stated.
The US Ambassador further noted that the debt relief is part of a larger $1.2 billion assistance package from the US this fiscal year, focusing on development, economic stability, security, and humanitarian aid.
Somalia has already benefited from a $4.5 billion in debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative, approved by the International Monetary Fund (IMF) and the World Bank’s International Development Association (IDA).
The relief immediately reduced Somalia’s external debt from 64% of its GDP in 2018 to less than 6% by the end of 2023, opening new avenues for economic growth and poverty reduction.
In March, the Paris Club a coalition of creditor nations, announced a cancellation of 99% of Somalia’s debt, amounting to approximately $2 billion.
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