MOGADISHU (Halbeeg News) – Somali Prime minister, Hassan Ali Kheire has appointed a committee to work on the debt cancellation process.
The government has been carrying out efforts to convince international lenders and other countries to help Somalia to ease the debt relief process.
In a statement on posted on the Twitter handle of the Premier, the government said the committee had been tasked to complete the process of debt relief.
Somalia’s bid to cancel its foreign debts which have been undergoing different stage said is to be aimed at enhancing peace, security, and development for the Horn of African nation which is recovering from two-decade-old civil war.
The move comes barely hours after Somali authorities, and the IMF reached a staff-level agreement on a fourth Staff-Monitored Program (SMP IV) covering the period May 2019—July 2020.
IMF staff commended the Somali authorities for sustained reform implementation and continued satisfactory performance under successive SMPs.
It is expected that the Executive Board will endorse the SMPIV as meeting the conditionality standard of an upper credit tranche (UCT) arrangement, putting Somalia more clearly on the path to debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.
According to the government, the debt relief process is very vital to accelerate new financial resources to be channeled for reconstruction and development and to encourage higher investments in the horn of the African country.
Somalia has over USD 4.6 billion debt to be canceled in the process which started a few years ago.
The recuperating horn of the African state has already received massive support from the African Union and the Arab league in the process.
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