US Grants Somalia Major Debt Cancellation

Source: The Guardian published on 6 November 2024 an article titled “US Cancels $1.1 Bn of Somalia’s Debt in ‘Historic’ Financial Agreement” by Faisal Ali.

Somalia announced the United States will cancel more than $1.1 billion in outstanding loans, which date back to the Siad Barre government that collapsed in 1991. This is the largest single component of Somalia’s $4.5 billion external debt.

Other Paris Club members also announced this year they are waiving $2 billion of additional debt. These decisions will allow Somalia to more readily access public financing from international financial institutions.