President Hassan Sheikh Mohamud of Somalia expresses joy over historic $4.5 billion debt relief
In a joyous appearance, Mr. Hassan Sheikh Mohamud, President of Somalia, conveyed heartfelt congratulations to the Somali people on the successful completion of the loan forgiveness process, marking a significant milestone in the nation’s economic journey.
President Mohamud expressed profound joy and commended the collective efforts that led to this achievement, underscoring the importance of this moment for the people of Somalia.
The loan forgiveness process is a testament to the dedication and resilience of the Somali population and its leadership.
Recall that the IMF and World Bank’s International Development Association (IDA) announced that it approved a debt relief of $4.5 billion for Somalia under the program of the Heavily Indebted Poor Countries Initiative.
Somalia has achieved the 37th Completion Point under the HIPC Initiative.
As a result of the debt relief, Somalia’s external debt has significantly decreased, dropping from 64% of GDP in 2018 to below 6% of GDP by the conclusion of 2023.
“Somalia’s external debt has fallen from 64% of GDP in 2018 to less than 6 percent of GDP by end 2023,” the institutions said in a joint statement.
The President’s message signals a momentous development in Somalia’s financial landscape, promising positive impacts on the nation’s economic stability and growth.
