Somalia and U.S. governments have signed a bilateral agreement to reduce and restructure debt owed by the Federal Government of Somalia (FGS) to three U.S. government agencies.
In a meeting between U.S. ambassador to Somalia, Donald Yamamot and Abdirahman Dialed Beileh, Somali Minister of Finance Beileh in Mogadishu on Sunday, the sides agreed both countries to cooperate on Somalia’s debt relief efforts.
U.S. embassy said in a statement that signing the agreement came to being after Somali authorities registered economic reforms.
“Signing this agreement was possible because Somalia has implemented significant economic reforms in recent years and in March 2020 reached the first stage of debt relief, known as “Decision Point,” through the Heavily Indebted Poor Countries Initiative. When Somalia reaches the final stage, “Completion Point,” the United States will have forgiven more than $1 billion in debt,” the embassy said.
U.S. also commended the FGS on its progress in pursuit of economic reform.
“Working through the debt relief process will allow Somalia to regain access to financial support from international financial institutions so that it can invest in poverty reduction and economic growth,” the statement reads.
The embassy said United States remains a committed partner to Somalia and is pleased to play a role in ensuring the economic success of the people of Somalia.