Somalia reduces national debt by 58% in 5 years

7b8e72db 10e2 495f 889b 7089a0e84b39

The country achieved this under the leadership of ex-President Mohamed Farmaajo and President Hassan Sheikh Mohamud who took over in 2022.

The East African country which was to end its programme under the International Monetary Fund (IMF) and the World Bank’s Highly Indebted Poor Countries programme on Wednesday December 13 is expected to get debt relief from the international lenders.

This leaves Somalia’s external debt at six (6) percent of GDP from the sixty-four (64) percent in 2018.

The relief was made by commercial creditors ($3 billion), followed by multilateral creditors ($573.1 million), World Bank’s International Development Association ($448.5 million), IMF ($343.2 million) and African Development Fund ($131 million), according to the East African.

The announcement will be made in Washington DC on December 13 after the approval process is completed by the Bretton Woods institution.

This makes Somalia the 37th country to reach the HIPC completion point. The HIPC initiative was created by the IMF and World Bank in 1996 to assist poor countries owing unmanageable debt burdens to clear their debts and reduce economic constraints.

More from Qonversations

Uncategorized

264d623f 395a 4de3 982c a1db70f61029

Africa possesses immense potential in oil and gas sector, energy expert says

Uncategorized

dac343d5 0b50 4938 b846 470e38b56ff3

Uganda crowned best investment destination in Africa

Uncategorized

59ba6448 e9ef 4fbd 88d2 624a70d0710c

East African nations collaborate for transformative railway project

Uncategorized

8cf8641c 9181 4b45 a947 f6f37a547aa8

Africa possesses immense potential in oil and gas sector, energy expert says

Front of mind