MOGADISHU, Somalia – Somalia’s government on Wednesday held celebrations in the capital, Mogadishu, after the IMF and the World Bank announced $4.5bn ($3.5bn) in debt relief for the country.
Prime Minister Hamza Abdi Barre says that the relief is “equivalent to relieving every Somali person of a debt of more than $300”.
“This is a testament that our country and our people are financially viable, attracting foreign investment, and we are no longer debt-ridden,” he adds.
The organizations pardoned Somalia’s debt under the Heavily Indebted Poor Countries (HIPC) program, which was created in 1996 to help poor countries facing an unmanageable debt burden.
The $4.5bn debt relief also includes pardons by other multilateral, bilateral and commercial creditors.
“Somalia’s external debt has fallen from 64% of GDP in 2018 to less than 6 percent of GDP by end 2023,” the institutions said in a joint statement.
PM Barre says the relief is monumental as it will allow Somalia to invest in development programs, revitalize the economy and borrow money from international lending institutions.
BBC Africa
