Somalia seeks Debts Forgiveness

Published: May 1, 2014
Somalia ministers meeting with the AFDB President in Tunis

Somali Federal Government has called for its creditors to cancel billion of dollars debts, in an effort to develop the country’s economy.

The Country’s foreign minister Abdirahman Beileh said that they will cooperate with the African Development Bank (AFDB) regarding the cancellation of the debts.

African Development Bank President Donald Kaberuka hosted the ministries of Foreign Affairs and Finance of Somalia in the Tunisian capital, discussing on ways of the Bank to implement development projects in the war-ravaged nation and boost the economic sector.

‘’ Somalia’s need for very substantial debt relief derives from the economic realities facing a post-conflict country,’’ said the Minister.

Moreover, he said, cancelling Somalia’s debt would provide countries with ‘long-term benefit, by offering them increased investment opportunities once the shackles on the country’s political and economic development are removed.’

Somalia, which has several times been top listed in the world’s most failed and corrupted states, is recovering from two decades of civil war.

Since the Central government was overthrown in 1991, the country’s infrastructure and human capital has been destroyed massively. The economy—which primarily relies on subsistence agriculture and fishing—is still held back in its development by the fractured nature of the country and the poorly developed infrastructure.

Last year, the International Monetary Fund (IMF) recognised the Federal government of Somalia, paving the way for the resumption of relations.

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