Somalia Knocks Out $36 Million Debt to OPEC Fund, Thanks to Saudi’s Heavy Lifting
VIENNA – Somalia has clinched a pact to wipe clean its $36 million arrears with the OPEC Fund. This pivotal move was orchestrated with Saudi Arabia’s backing, which extended a bridge loan to ease the repayment.
This agreement opens a fresh chapter in Somalia’s debt relief saga, aiming to bolster the nation’s macroeconomic footing and drive economic rebound.
This deal’s signing is anticipated to unleash new funding doors from the OPEC Fund, directed at bolstering Somalia’s national growth plans. This breakthrough is the fruit of protracted debt relief talks. With patronage from Saudi Arabia and the OPEC Fund, Somalia is charting a course toward robust economic steadiness and expansion.
Saudi Arabia, the OPEC Fund, and Somalia have hooked up on a three-pronged deal to turbocharge Somalia’s economic revival. The announcement came amidst the OPEC Fund Development Forum and Ministerial Meeting in Vienna.
Signatories of the agreement included Saudi Finance Chief Mohammed al-Jadaan, Somalian Finance Boss Bihi Egeh, and OPEC Fund Bigwig Abdulhamid al-Khalifa.
The accord jibes with the International Monetary Fund and World Bank’s low-income nation debt protocol, ensuring no impoverished country becomes shackled by unmanageable debt. This comes as Somalia grapples with al-Qaeda-linked al-Shabaab militants and homegrown squabbles over resources.
At the forum, al-Jadaan underscored the impact of each nation’s actions on lasting economic progress. He also spotlighted Saudi Arabia’s bid to pivot from oil dependency per its Vision 2030 blueprint, involving labor tweaks, educational investments, and support for smaller enterprises.
Founded in 1976 by OPEC member countries, the OPEC Fund just opened its larger HQ in Vienna, highlighting its dedication to aiding low-income nations and tackling essentials like food, power, clean water, healthcare, and schooling.
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