Mogadishu(Mogadishu24)-The Federal Government of Somalia is expected to receive substantial debt relief totalling $4.5 billion tomorrow, Wednesday, from both the International Monetary Fund (IMF) and the World Bank.

This debt relief is anticipated to play a crucial role in reducing Somalia’s financial burden, leaving the country with less than $600 million in remaining debt, which is also expected to be relieved in the near future.

The Minister of Finance, Bihi Iman Egeh, highlighted the arduous journey Somalia has undertaken to reach the Heavily Indebted Poor Countries Initiative (HIPC) completion point.

“We are hopefully days away from reaching the HIPC Completion Point on Wednesday, the 13th of December 2023, after both the Boards of the World Bank and IMF finalize their deliberations. Our reform journey has been rigorous and rewarding. We will share key achievements leading up to Wednesday,” said Minister Egeh.

A statement from the IMF last week shed light on the upcoming events of tomorrow, “On Wednesday, December 13th, our Executive Board will meet to consider Somalia’s debt relief under the Heavily Indebted Poor Countries Initiative completion point. The World Bank’s Executive Board will meet on the day before on the same issue,” the statement said.

These debt reliefs are a huge achievement towards implementing potential reforms to build functional institutions, attract investments, and achieve economic growth for Somalia. It will allow the country to redirect resources towards critical sectors such as security, defence, education, and governance.

In 2023, Somalia’s economy achieved 2.8% growth to its GDP, and a 3.7% growth is expected in 2024.

Through institutional reforms and maintaining macroeconomic stability, Somalia has continued to make progress in achieving the HIPC Completion Point, which will clear the loans contracted during the pre-civil war era.