The Federal Government of Somalia (FGS) has signed a bilateral agreement with the United States.
Through the agreement, Somalia now receives one more opportunity to undertake fiscal and economic reforms.
On Sunday September 27, the US Ambassador to Somalia, Donald Yamamoto, inked the agreement with representatives from the FGS.
Prime Minister Mohamed Hussein Roble and Dr. Abdirahman Beileh, the Minister of Finance, signed the agreement on behalf of Somalia.
Ambassador Yamamoto said that the agreement allows the restructuring and reduction of the debts that Somalia owes to three agencies of the US government.
Further, Yamamoto stated that the US signed the agreement with Somalia because of the “significant economic reforms” that the East African nation has implemented.
In March 2020, Somalia reached the Decision Point, which is the first stage of debt relief. It attained this status with the help of the Heavily Indebted Poor Countries Initiative.
As the country proceeds to Completion Point, which is the final stage of debt relief, the government of the US would have cancelled over $1 billion that Somalia owes it.