Saint Petersburg(Mogadishu24)-The Government of Russia has exempted $640 million debt relief to the Federal Government of Somalia. The agreement was signed on Wednesday in Saint Petersburg between Mr. Bihi Iman Igeh, Somali Minister of Finance, and Timur Igorevich Maksimov, Deputy Minister of Finance of Russia.

Signed a debt relief agreements with the Govt of Russia represented by the Deputy Finance Minister, Timur Maksimov. The signing of this agreements — just over $ 684 million and 7.5 blocked funds—will accelerate Somalia’s efforts to reach the HIPC Completion Point in a timely manner” Egeh said.

This debt relief is an important step towards Somalia’s hopes and efforts for debt forgiveness. The World Bank and the International Monetary Fund (IMF) have previously offered total debt relief for the Somali Government, pending the completion of the process.

Puntland State has appealed to the World Bank and IMF to suspend the debt relief program until an agreement is reached on Somalia’s state-building system and political stability, citing potential threats to stability and international assistance.

However, Former Somalia’s Finance Minister, Dr. Elmi Mohamud Nur, assured that the dispute won’t hinder the debt relief process, emphasizing the importance of a swift resolution to avoid setbacks.

The quest for debt relief has been a long journey for Somalia, with the Government tirelessly working towards securing support from international institutions like the World Bank and the IMF. This latest agreement with the Russian Government revives Somalia Government’s pursuit of debt relief.