US agrees to write off $1bn of Somalia’s debt

Mogadishu and Washington yesterday agreed to exempt Somalia from paying $1 billion in debt.

According to the official news agency Sonna, the Somali Minister of Finance Bihi Egeh signed an agreement with the US Ambassador Richard Riley in the capital, Mogadishu.

The agency stated that “a bilateral agreement forgives Somalia’s $1.14 billion debt to the United States.”

It explained that this historic agreement comes within Somalia’s success in achieving exemption from its debt to France, Russia and other countries.

Egeh stressed “Somalia’s continued commitment to continue its IMF-driven economic reform programme, focusing on increasing domestic revenue, strengthening public financial management, and improving governance.”

He thanked “the United States and the American people for their continued support in the field of economic development and reforming the financial system in the country.”

The US ambassador praised “Somalia’s commitment to economic reforms,” explaining that “This debt relief reflects the US’s belief that a safer, more prosperous Somalia will benefit both nations.”

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