Somalia has signed a $306.5 million debt relief agreement with the Arab Monetary Fund (AMF), marking a significant step in the nation’s economic recovery efforts.
The deal was formalized on Wednesday in Kuwait during the Annual Meeting of Arab financial institutions.
This agreement restructures Somalia’s debt to the AMF, reflecting growing international confidence in the country’s economic reform initiatives.
Finance Minister, Bihi Iman Egeh, emphasized the importance of the deal, stating it is “fundamental to re-engagement with the fund” and crucial for advancing Somalia’s reform agenda.
The AMF, headquartered in Abu Dhabi, focuses on promoting financial stability and economic development among its 22 Arab member states.
The debt relief provided through this agreement is expected to ease Somalia’s financial pressures and support ongoing economic reforms.
This development follows Somalia’s achievement last year of securing the cancellation of 99% of its debt from Paris Club creditor nations, further facilitating the country’s reintegration into the international financial system.
Overall, the agreement with the AMF represents a pivotal moment in Somalia’s journey toward economic stability and sustainable development.