Somalia has achieved a historic milestone by reaching the Heavily Indebted Poor Countries (HIPC) Completion Point, which triggered $4.5 billion in debt relief from the International Monetary Fund (IMF) and the World Bank on December 13, 2023.
The debt relief will free up Somalia’s fiscal space and allow it to access new sources of financing for its development needs. Somalia is the 38th country to reach the HIPC Completion Point since the initiative was launched in 1996.
Somalia’s achievement was welcomed by its international partners, who praised the country’s efforts to implement economic and social reforms under challenging conditions.
IMF Managing Director Kristalina Georgieva said that the IMF will continue to build on its strong partnership with Somalia and support its recovery from the COVID-19 pandemic and the impact of climate change.
IGAD Executive Secretary Workneh Gebeyehu commended the dedicated efforts of the Federal Government of Somalia towards economic and social reforms. He also applauded President Hassan’s exceptional leadership throughout this transformative process.
The EU said that it remains committed to supporting Somalia after this milestone by promoting economic reforms while ensuring greater accountability through budget support.
The US embassy in Mogadishu said Somalia’s progress in governance, institution-building, and economic development is commendable. The US is the largest bilateral donor to Somalia, providing more than $500 million in humanitarian, security, and development assistance in 2023.
Somalia’s President Hassan Sheikh Mohamud thanked the international community for their support and said that the debt relief marks a new era for Somalia. He vowed to continue working towards peace, stability, and prosperity for all Somalis.
