The US has written off more than $1.1 billion of Somalia’s debt, signalling Mogadishu’s continued wins in the international arena. Richard H. Riley, the US ambassador to Somalia, said the debt relief was worth $1.14 billion and was a strong sign of US commitment to Somalia’s future. In March 2024, the Paris Club, a coalition of creditor nations, announced the cancellation of about $2 billion in debt, which followed the IMF and World Bank’s announcement of debt relief for 99 percent of Somalia’s debt. Debt relief was initially conditional on improvements in State institutions and data collection to adequately measure the health of the economy and tame wastage. Dr Hussein Ali Ahmed, a Mogadishu-based economist, told The EastAfrican: “To beat all these socio-economic ailments, debt relief must be complemented by strong national reforms.”

Source: Daily Nation November 07, 2024 12:03 UTC