Qatar lauds move by IMF to grant debt relief to Somalia

The government of Qatar has congratulated Somali government for reaching Heavily Indebted Poor Countries (HIPC) decision point debt relief.

In a statement by the Ministry of Foreign Affairs termed the move by the International Monetary Fund (IMF) and the World Bank’s International Development Association to grant debt relief to Somalia as milestone.

The ministry said that the decision is an important step on Somalia’s path towards stability and prosperity.

“Through development initiatives and infrastructure investments, the State of Qatar have worked with the government and people of Somalia to generate opportunities and employment and create the foundations for future growth and stability,” the statement said.

“This momentous decision marks the start of a new era for Somalia. We will continue to stand hand-in-hand with the people of Somalia as they work towards a brighter future.”

MF and World announced Somalia qualified for debt relief after meeting reform benchmarks and clearing debts owed to its multilateral creditors.

Somalia is the 37th country to reach this milestone, known as the HIPC Decision Point.

In 1996, the World Bank and IMF launched the HIPC Initiative to create a framework in which all creditors, including multilateral creditors, can provide debt relief to the world’s poorest and most heavily indebted countries to ensure debt sustainability, and thereby reduce the constraints on economic growth and poverty reduction imposed by the unsustainable debt-service burdens in these countries.

To date, 37 HIPC countries, including Somalia, have reached their decision points, of which 36 have reached the completion point.

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