Today U.S. Ambassador Yamamoto and Somali Minister of Finance Beileh met in Mogadishu and signed a bilateral agreement to reduce and restructure debt owed by the Federal Government of Somalia (FGS) to three U.S. government agencies.
Signing this agreement was possible because Somalia has implemented significant economic reforms in recent years and in March 2020 reached the first stage of debt relief, known as “Decision Point,” through the Heavily Indebted Poor Countries Initiative. When Somalia reaches the final stage, “Completion Point,” the United States will have forgiven more than $1 billion in debt.
We commend the FGS on its progress in pursuit of economic reform. Working through the debt relief process will allow Somalia to regain access to financial support from international financial institutions so that it can invest in poverty reduction and economic growth.