Monday December 2, 2024
Mogadishu (HOL) — Somalia's government announced on Monday
that it had finalized a debt forgiveness agreement with France, amounting to
$145.6 million, as part of ongoing economic reforms and debt relief
efforts.
The agreement was signed by Somali Finance Minister Bihi
Egeh and Arnaud Suquet, French Ambassador to Kenya and Somalia.
“Today, we finalized the debt relief process with the
Government of France totaling $145.6 million. I signed this historic agreement
with Arnaud Suquet this morning,” said Minister Egeh. He highlighted that the
debt cancellation follows Somalia's successful completion of the Heavily
Indebted Poor Countries (HIPC) Initiative in 2023 and the Paris Club agreement
in 2024.
“We are grateful to the government and people of France for their
unwavering support,” the minister added.
Somalia has been steadily progressing in its debt relief
journey, with countries such as Denmark, Japan, and the United States recently
forgiving their debts over the past two months.
The Horn of Africa nation recently completed a debt
forgiveness initiative overseen by the International Monetary Fund (IMF) and
the World Bank. As a result, Somalia became eligible for over $4.5 billion in
debt relief from its creditors, a crucial step toward restoring financial
stability and fostering sustainable development.