Somali Magazine – Somalia’s administration celebrated in Mogadishu on Wednesday after the IMF and World Bank announced $4.5 billion ($3.5 billion) in debt relief for the country.
According to Prime Minister Hamza Abdi Barre, the relief is “equivalent to relieving every Somali 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 said.
The debt was forgiven by the organizations under the Heavily Indebted Poor Countries (HIPC) initiative, which was established in 1996 to assist poor countries facing an untenable debt burden.
The $4.5 billion in debt relief includes forgiveness from additional international, bilateral, and commercial debtors.
“The external debt of Somalia has fallen from 64% of GDP in 2018 to less than 6% of GDP by the end of 2023,” the institutions stated in a joint statement.
According to Prime Minister Barre, the assistance will allow Somalia to engage in development projects, revitalize the economy, and borrow money from foreign lending organizations.