The International Monetary Fund and the World Bank approved $4.5 billion in debt forgiveness for Somalia Wednesday after the Horn of Africa nation completed years of financial reforms under the Heavily Indebted Poor Countries Initiative, or HIPC.
The initiative was launched in 1996 by the IMF and the World Bank to help the worlds poorest countries achieve debt sustainability.
In a statement, the IMF and the World Bank said the debt relief will facilitate access to critical additional financial resources that will help Somalia strengthen its economy, reduce poverty, and promote job creation.
Following HIPC Completion Point, Somalias external debt has fallen from 64 percent of GDP in 2018 to less than 6 percent of GDP by end 2023, the stat…
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