The government of Somalia announced today that it has signed an agreement with Russia to forgive more than $684 million in debt owed by the Russian government to Somalia.
The agreement was signed in Saint Petersburg, Russia, by the Minister of Finance of Somalia, Biihi Iman Cige, and the Deputy Minister of Finance of Russia, Timur Igorevich Maksimov.
“This is a historic day for Somalia,” said Minister Cige. “The debt forgiveness agreement will allow us to focus on the future and build a better future for our people.”
The debt forgiveness agreement is also a sign of the growing cooperation between Russia and Somalia. The two countries have been working together to strengthen their economic ties in recent years.
“We are committed to working with Somalia to build a brighter future for the Somali people,” said Deputy Minister Maksimov. “The debt forgiveness agreement is a symbol of our commitment to this partnership.”
The debt forgiveness agreement is the latest step in Somalia’s efforts to achieve debt relief. In 2020, Somalia was declared eligible for debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative. The HIPC Initiative is a program that provides debt relief to countries that have met certain economic and social criteria.
Somalia is expected to receive official decision on debt relief from the Executive Committee of the International Monetary Fund (IMF) at the end of this year. The debt relief will significantly reduce Somalia’s debt burden and free up resources for the government to invest in its people and economy.