Analysis: Somalia’s debt relief milestone masks a risky push toward new borrowing
Somalia’s long campaign for debt relief culminated in December 2023, when the IMF and World Bank certified the country had reached the HIPC “Completion Point.” In March 2024, Paris Club creditors followed with sweeping cancellations, clearing much of the stock of legacy obligations. On paper, the breakthrough restores Somalia’s access to concessional finance and signals confidence in the government’s economic direction. Yet the core domestic underpinnings that are supposed to safeguard a post-relief economy remain uneven…