Mogadishu, (HORSEED MEDIA) – In a momentous step forward for Somalia’s economic recovery, the Somali government and the United States have signed an agreement to forgive $1.14 billion in debt owed by Somalia to the United States
The signing ceremony, held at the U.S. Embassy in Mogadishu, was attended by Somali Finance Minister Bihi Iman Cige and U.S. Ambassador to Somalia Richard H. Riley.
“This event marked the completion of the debt forgiveness program for Somalia, especially the debts owed by Somalia to the United States,” Minister Bihi Iman Cige said. “We managed to meet the requirements of HIPC (Heavily Indebted Poor Countries) and worked with the IMF, the World Bank, and the Paris Club.”
The $1.14 billion debt forgiveness represents the largest component of the total $4.5 billion in debt that Somalia owed to various countries and organizations, all of which has now been forgiven.
“This debt relief took place in the framework of the International Monetary Fund and World Bank’s Heavily Indebted Poor Countries initiative,” Ambassador Riley explained. “The United States is proud to be the host country of both the IMF and World Bank, and we are also a major shareholder in both institutions.”
Riley emphasized that the debt forgiveness is just one part of the broader support the U.S. has provided to Somalia. In the current fiscal year alone, the United States has delivered over $1 billion in additional assistance for development, economics, security, and humanitarian efforts.
“This debt of $4.5 billion represented a significant financial burden on Somalia and all of the Somali people,” Riley said. “It was a distraction from the country’s vision for a prosperous and peaceful future. But this debt relief is a crucial step forward.”
Minister Bihi Ige expressed deep gratitude to the American government and people for their generosity in forgiving Somalia’s debt, stating: “We are very grateful to the American government and the people of the United States for the generosity of the Somali people in forgiving that debt.”
The historic debt forgiveness agreement marks a major milestone in Somalia’s ongoing economic recovery and development efforts, paving the way for the country to focus its resources on building a more stable and prosperous future.
HORSEED MEDIA
