Somalia and Denmark Ink Deal for Debt Relief, Highlighting Economic Reform Advances

In a key move for Somalia’s financial future, Finance Minister Bihi Iman Egeh inked a pivotal debt relief deal with Denmark’s representative, Ambassador Steen Sonne Aderson, in the bustling city of Mogadishu on a vibrant Monday.

This latest agreement reflects the positive outcomes from the notable discussions held by the Paris Club back in March 2024, another feather in the cap of Somalia’s ongoing economic reform crusade.

The ministry enthusiastically declared, “The national reform efforts and debt forgiveness successes of Somalia are coming to fruition. We extend our heartfelt thanks to the Danish government for being a steadfast ally in our quest for sustainable growth.”

In a substantial move, the Paris Club—an assembly of some of the world’s affluent nations—made waves in March by agreeing to write off a monumental 99% of Somalia’s outstanding debt, with heavy hitters like the U.S., Japan, and Russia leading the way by pardoning over $2 billion collectively.

Back in November, Uncle Sam wiped away $1.1 billion of old dues, tackling about a quarter of what Somalia still owed, adding a defining layer to their support. On the heels of this, a fresh agreement was announced just last week: Somalia and Japan shook hands on a $100 million debt waiver, further cementing the nation’s steady path to economic reinvention.

Somalia, an oft-turbulent yet resilient part of the Horn of Africa, recently wrapped up a strategic debt forgiveness program choreographed by global heavyweights, the IMF and World Bank. Achieving eligibility for a whopping $4.5 billion debt relief package from various lenders represents a monumental stride towards regaining stable finances and nurturing a foundation for lasting development.

Edited by: Ali Musa

alimusa@axadletimes.com

Axadle international–Monitoring