US President Donald Trump has signed a bill that authorizes the first phase of debt relief for the Federal Republic of Somalia.
His signature comes days after the house of Congress approved the spending package which included $35 million to begin paying the principal of $1.1 billion in the US held Somalia debt.
Mr. Eric LeCompte, the executive director of Jubilee USA Network broke the news on his twitter saying the move will be a big relief for the horn of the African state.
“Relieving Somalia’s debt could mean building new roads, women’s empowerment, kids going back to school and moving forward measures to end extreme poverty, “twitted Eric LeCompte who worked on debt relief for Somalia for the past two years.
“We are seeing good progress from the United States Government and the IMF on Somalia debt relief,”LeCompe added.
The United States is the largest creditor holding $1.1 billion in Somalia debt. The majority of the remainder of the debt is held by the International Monetary Fund, World Bank, France, and Italy.
Just last week, the International Monetary Fund board meeting announced fundraising for Somalia for arrears on the cancellation debt relief.
Somalia owes about $4.6 billion in debt and cancellation might come as early as February next year.