(06 Nov 2024) MOGADISHU (Halqabsi News) – The Somali government announced on Tuesday that it has successfully secured a debt forgiveness agreement worth more than $1.14 billion from the United States, marking a significant milestone in the country’s ongoing efforts to address its debt burden. The agreement, signed in Mogadishu between Somali Finance Minister Bihi Egeh and U.S. Ambassador Richard H. Riley, reflects a positive step in Somalia’s economic recovery.
Minister Egeh expressed his gratitude on X, stating, “The American government debt totaling over $1.14 billion was forgiven today by the United States government.” He also thanked the U.S. for its unwavering support, noting that this agreement builds on the successful debt relief process and the Paris Club agreement reached earlier this year.
Ambassador Riley highlighted that the debt cancellation comes in addition to over $1.2 billion in U.S. assistance provided to Somalia this fiscal year, covering development, economic, security, and humanitarian aid. “The United States continues to be a steadfast partner in support of the people of Somalia,” Riley said.
The agreement follows Somalia’s inclusion in the Heavily Indebted Poor Countries (HIPC) Initiative, under which it has benefited from significant debt relief. Somalia reached the Completion Point under the HIPC in 2023, securing $4.5 billion in debt relief from various creditors. The country has been among the final beneficiaries of the initiative, which has helped more than 30 countries reduce their debt burden since its inception in 1996.
Halqabsi News
