Somalia secures debt cancellation from Paris Club nations
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Staff Reporter Garowe Online
- Posted On 14-03-2024, 12:21PM
MOGADISHU, Somalia - The Federal Government of Somalia has achieved yet again milestone in its fiscal discipline, following the cancellation of debt by Paris Club nations, in yet another masterclass achievement achievement within the Horn of Africa nation.
Somalia has been pushing for internal fiscal reforms in compliance with global standards, attracting interest in debt relief after years of instability. The government of Somalia prioritized reforms following recommendations by the International Monetary Fund (IMF) and the World Bank.
According to Paris Club, a French Finance Ministry body, in the United States. Japan and Russia canceled more than $2 billion for Somalia. This will give the country a greater start in compliance with financial reforms as recommended by the IMF.
The Horn of Africa country was eligible for more than $4.5 billion of debt relief from all creditors after in December reaching the end of a debt forgiveness initiative overseen by the International Monetary Fund (IMF) and World Bank, Yahoo reports.
Somalia reached the "Completion Point" of the Heavily Indebted Poor Countries Initiative (HIPC), having been exiled from the international financial system for more than 30 years marked by instability and civil war.
"Paris Club creditors welcomed the Federal Republic of Somalia's determination to continue to implement a comprehensive poverty reduction strategy and an ambitious economic reform program to create the foundations for sustainable, inclusive economic growth," the Paris Club said.
Somalia has been fighting for stability for three decades and with emphatic security reforms, the country is steadily gaining, encouraging more investors to come to the Horn of Africa nation for investment. Somalia has also managed to somehow contain terrorism.
GAROWE ONLINE
