Somalia will receive €20.5 million under the Somalia State and Resilience Building Contract and Support to Debt Relief Action (SRBC) program.
The European Union announced the approval of the funds on Thursday.
Tiina Intelmann, the EU Ambassador to Somalia, confirmed the pending disbursement.
She added that Somalia expects to reach a huge milestone, especially with the completion of the HIPC in sight.
Amb. Intelmann expressed hope that the newly approved funds would help Somalia to tackle the opportunities and challenges expected to arise from its soon-to-be new status as a debt-free nation.
SRBC is an EU program for the Horn of Africa nation.