Somali National News Agency
So
Ar
Search
  • Home
  • Local News
    Local NewsShow More
    President Hassan Sheikh Sends Congratulatory Message to Djibouti, Reaffirming Strong Bilateral Ties
    June 27, 2025
    Djibouti Marks 48th Anniversary of Independence Amidst Celebrations and Historical Reflection
    June 27, 2025
    Joint Somalia Operation Decimates Al-Shabaab Leadership Hub and Arms Cache in Aden Yabaal
    June 27, 2025
    Somali Police Apprehend 17 Individuals, Including Security Officers, Over Security Violations During Celebrations
    June 27, 2025
    Somali Minister Meets Algerian Counterpart to Strengthen Strategic Partnership on Labor and Social Affairs
    June 27, 2025
  • World News
    World NewsShow More
    Protests intensify in Los Angeles after Trump deploys hundreds of National Guard troops
    June 9, 2025
    31 Palestinians are killed heading to a Gaza aid site, witnesses say. Israel denies responsibility
    June 7, 2025
    Hajj Season 1446 AH: Synergy Between Technology and Humanity in Serving the Guests of Allah
    June 6, 2025
    Machine Gun, AK-47 Rifles Recovered as 4 Al-Shabaab Terrorists are Killed in Garissa
    June 3, 2025
    Israel kills 2 Gaza aid seekers as UN warns of ‘catastrophic hunger’
    May 31, 2025
  • Articles
    ArticlesShow More
    Reviving Somalia’s Tourism and Hospitality Sector: A Path Toward Economic Resilience and Cultural Renaissance
    June 21, 2025
    Somalia’s Strategic Path in a Resurgent China-Africa Partnership
    June 12, 2025
    Remarks on Somalia’s participation in the China-Africa Economic and Trade Expo
    June 13, 2025
    Hajj Season 1446 AH: Synergy Between Technology and Humanity in Serving the Guests of Allah
    June 6, 2025
    Wind power turbines line a mountain range in Ji’an, Jiangxi province, July 9, 2022.
    What China’s climate action means for the planet’s future?
    June 5, 2025
  • Business
    BusinessShow More
    Somalia Unveils the Blueprint for a Modern and Sustainable Mogadishu
    December 21, 2024
    Djibouti Launches $57.4 Million Youth Entrepreneurship Project to Combat Climate Change
    November 25, 2024
    FM meets Minister of Investment of Saudi Arabia
    October 28, 2024
    President Hassan Sheikh Inaugurates New LPG Storage Center in Mogadishu
    May 12, 2024
    Collaboration of ICT transformation for digital Infrastructure
    October 24, 2023
  • Sports
    SportsShow More
    Mogadishu Stadium to Host Star-Studded Match Featuring Somali Legends and International Football Icons
    May 27, 2025
    Arsenal held at Brighton while Man City bounce-back continues
    January 5, 2025
    Galmudug wins the Inter-State Football Tournament
    January 29, 2024
    Somalia set for two int’l friendlies ahead of WC qualifier clashes against Algeria and Uganda
    October 10, 2023
    Chicago woman, 104, skydives from plane, aiming for record as the world’s oldest skydiver
    October 3, 2023
  • Tenders
    TendersShow More
    Quay Renovation Works – Supply and Installation of Fenders and Bollards
    April 11, 2025
Reading: Paris Club Creditors Agree to Cancel $1.4 Billion of Somali Debt
Share
Font ResizerAa
Somali National News AgencySomali National News Agency
  • SOMALI
  • ARABIC
Search
  • Home
  • Local News
  • World News
  • Articles
  • Business
  • Sports
  • Tenders
Follow US
©2023 || All rights reserved SONNA
Somali National News Agency > Blog > Local News > Paris Club Creditors Agree to Cancel $1.4 Billion of Somali Debt
Local News

Paris Club Creditors Agree to Cancel $1.4 Billion of Somali Debt

By admin
Last updated: April 1, 2020
3 Min Read
Share

WASHINGTON/PARIS (SONNA): The Paris Club of creditor nations agreed on Tuesday to restructure Somalia’s debt, including immediately canceling $1.4 billion owed by the impoverished Horn of Africa country.

Three decades of conflict have left Somalia all but cut off from the global financial system and relief from its debt is expected to open the way for new sources of financing for the country.

The decision, first reported by Reuters, cancels 67% of the debts owed to Paris Club creditors by Somalia. It came after more than nine hours of discussions by video conference.

Somali Finance Minister Abdirahman Beileh called the decision a big step forward for his country, which is also grappling with the Coronavirus outbreak and a recent desert locust swarm.

We had very productive discussions with the Paris Club and we welcome their support in relieving Somalia of a substantial amount of its debt to them,”Minister Beileh Said.

He said the Somali government would hold separate bilateral discussions with the creditors to finalize the process. He said his government would continue the economic reforms it had undertaken over the past eight years to enable the debt relief.

An official with the International Monetary Fund said several creditors were expected to grant Somalia additional debt relief on a bilateral basis, and it could eventually see 100% debt cancellation deals with some countries after it completes additional steps under the Heavily Indebted Poor Countries (HIPC) Initiative in about three years.

The IMF and the World Bank said last week that Somalia had taken the necessary steps receiving debt relief.

Several of Somalia’s Paris Club creditors, including the United States, the UK and Norway, as well as the World Bank and the IMF, urged Paris Club members to provide “generous” debt relief to Somalia during the negotiations on Tuesday, said one source familiar with the discussions.

Somalia is the 37th country to qualify for debt relief under the HIPC process.

In time, debt relief will help Somalia reduce its external debt to $557 million in net present value terms from $5.2 billion at the end of 2018, the IMF and the World Bank said.

The IMF last week also approved a new three-year $395 million financing arrangement for Somalia under its Extended Credit Facility (ECF) and Extended Fund Facility (EFF).

Source: New York Times

 

       

Share This Article
Facebook Whatsapp Whatsapp Email Copy Link Print

MORE NEWS

Official Reopening of the Ministry of Foreign Affairs Archives

CultureEducationLocal News
November 23, 2024

Kenya’s small farmers find respite in avocados amid changing climate

NAIROBI(SONNA) As crop diseases and pests rise in Kenya amid a rapidly changing climate that…

March 11, 2023

President Hassan Sheikh Sends Congratulatory Message to Djibouti, Reaffirming Strong Bilateral Ties

MOGADISHU, Somalia – The President of the Federal Government of Somalia, His Excellency Hassan Sheikh…

June 27, 2025

Nimcaan Hilaac appointed to lead Waberi National Band

Mogadishu (SONNA)-Minister of Information, Culture and Tourism of the Federal Republic of Somalia, H.E. Mohamed…

March 3, 2020

YOU MAY ALSO LIKE

Military Court Sentences Two IS militants to Eight Years in Prison

MOGADISHU, —Court of the Armed Forces of Somalia handed down an eight-year prison sentence to two IS militants namely, Abdiqani…

Local News
December 16, 2023

Jowhar families to benefit from water well, constructed by AMISOM

Mogadishu(SONNA)-Families living in Towfiq Internally Displaced Peoples (IDP) camp in Jowhar, Middle Shabelle region of Somalia, will now have access…

Local NewsNews
April 22, 2021

Attorney General Meets with UK-Based GIST Officials to Strengthen Counter-Terror Financing Efforts

Mogadishu, (SONNA) - Attorney General Dr. Sulayman Mohamed Mahmoud held a meeting today at his office with officials from the…

Local News
April 22, 2025

Minister of Interior meets a delegation from the IOM in Somalia

Mogadishu,(SONNA) - The Minister of Interior, Federal Affairs and Reconciliation of the Federal Government of Somalia, H.E Ahmed Moallim Fiqi…

Local News
March 25, 2024

Somali National News Agency established in 1964. It is one of the main pillars of the Ministry of Information, Culture, and Tourism.

  • Home
  • Local News
  • World News
  • Articles
  • Business
  • Sports
  • Tenders
  • SNTV
  • RADIO MOGADISHU
  • DALKA JOURNAL
  • TOURISM DEPARTMENT

Follow US: 

  • MoICT
  • VILLA SOMALIA
  • OPM SOMALIA

All rights reserved SONNA

©2023

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?