On Tuesday, joy broke out in Somalia as news that Paris Club Creditors cancelled the country’s US$1.4 billion debt.
Overall, the Horn of Africa nation owes a total of US$5.2 billion.
With the news permeating government offices and the streets, there is real expectation in the country that its debt relief efforts are on schedule.
Somalia has rallied the world to cancel its ever-increasing debt. Some of the debt goes back more than 30 years ago when the country was battling the regime of the deposed Siad Barre.
Paris Club Creditors are among a group that has been urging Somalia to reform its financial systems, which have been dysfunctional for over three decades.
Top government officials have taken advantage of the lack of proper financial systems to loot public resources and convert donor funds for personal use.
IMF and World Bank were then forced to severe links with the Horn of Africa nation, which meant that Somalia could never access the financing it needed to improve its infrastructure.
However, the East African country has implemented several measures designed to resuscitate the ailing financial systems and curb corruption.
Its efforts seem to have borne fruit, especially now that 67 percent of the debt Somalia owed Paris Club Creditors has been written off.