The Norwegian government has cancelled a debt worth US$1.8 million owed by Somalia, reports from Oslo indicate.
Ine Eriksen Soreide, the Norwegian Minister of Foreign Affairs, announced the waiver of NOK 16.2 million.
Soreide made the announcement on Thursday, December 17 following the signing of a new bilateral agreement between the two nations.
“As we waive Somalia’s debt, our goal is to promote sustainable development, reduce poverty, and enhance stability in the nation,” Soreide said.
Soreide acknowledge that Somalia is one of the most vulnerable countries in the world.
In March 2020, Norway offered Somalia a short-term bridging loan worth NOK 3.4 billion to help the East African nation to clear its debt arrears to International Development Association (IDA).
Norway has joined other international partners to offer Somalia extensive packages that helped the Horn of Africa country to qualify for debt relief under Heavily Indebted Poor Countries (HIPC) Initiative.