Maldives Republic
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2 years, 2 months ago
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Paris Club Cancels 99% of Somalia’s Debt
The Paris Club announced the cancellation of 99% of Somalia's debt, amounting to US$2 billion, effective January 2023, after over three decades of conflict. Major creditor nations including the US, UK, Russia, Norway, and Japan agreed to the waiver. Somali officials and the IMF praised the decision, which is expected to free up resources for public services. Somalia qualified for debt relief under the Heavily Indebted Poor Countries Initiative (HIPC), becoming eligible for up to $4.5 billion. Economist Uweis Abdullahi Ali stressed the need for domestic revenue generation.