The Abu Dhabi-based Arab Monetary Fund (AMF) has signed a $307 million debt relief agreement with Somalia to support the African country’s economic reform programme.
The agreement covers the restructuring of the debt owed by Somalia to the AMF, the 22-nation-backed fund said in a statement, without giving any further details.
Somalia’s finance minister Bihi Egeh said the agreement was crucial to the country’s debt relief efforts and fundamental to reengagement with the fund to achieve economic growth, Somalia’s state news agency Sonna reported.
Last year Somalia secured the cancellation of almost all its debt owed to the “Paris Club” members, an informal group of 22 creditor nations, primarily Western countries.
In 2023, the International Monetary Fund and the World Bank announced $4.5 billion of debt relief for Somalia under the Heavily Indebted Poor Countries initiative.
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