U.S. Forgives $1.14 Billion of Somalia's Debt, Strengthening Path to Economic Stability

Mogadishu(Mogadishu24)-The United States has forgiven $1.14 billion of Somalia’s debt, marking a significant step in Somalia’s journey toward economic stability. U.S. Ambassador to Somalia, Richard Rilley, announced this milestone, noting that it is part of a larger $4.5 billion debt relief initiative under the Heavily Indebted Poor Countries (HIPC) Initiative, managed by the IMF and World Bank.

Ambassador Rilley praised Somalia’s commitment to economic reforms, including new laws, enhanced financial accountability, and sustainable practices, which have led to the attainment of HIPC’s Completion Point.

"This debt relief reflects the U.S.'s belief that a safer, more prosperous Somalia will benefit both nations," he said.

Somalia’s Minister of Finance, Bihi Iman Egeh, expressed deep gratitude, noting the milestone as "a new beginning" for Somalia. “Today, we are free from over a billion dollars of unsustainable debt,” he remarked.

He also highlighted the ongoing commitment of Somalia to continue its IMF-driven economic reform program, focusing on increasing domestic revenue, strengthening public financial management, and improving governance.