Mogadishu(Mogadishu24)-The United States has forgiven $1.14 billion of Somalia’s debt, marking a significant step in Somalia’s journey toward economic stability. U.S. Ambassador to Somalia, Richard Rilley, announced this milestone, noting that it is part of a larger $4.5 billion debt relief initiative under the Heavily Indebted Poor Countries (HIPC) Initiative, managed by the IMF and World Bank.

Ambassador Rilley praised Somalia’s commitment to economic reforms, including new laws, enhanced financial accountability, and sustainable practices, which have led to the attainment of HIPC’s Completion Point.

“This debt relief reflects the U.S.’s belief that a safer, more prosperous Somalia will benefit both nations,” he said.

Somalia’s Minister of Finance, Bihi Iman Egeh, expressed deep gratitude, noting the milestone as “a new beginning” for Somalia. “Today, we are free from over a billion dollars of unsustainable debt,” he remarked.

He also highlighted the ongoing commitment of Somalia to continue its IMF-driven economic reform program, focusing on increasing domestic revenue, strengthening public financial management, and improving governance.

With the U.S. providing over $1 billion in support this fiscal year alone across economic, security, and humanitarian sectors, the debt relief comes as part of a broader partnership aimed at building Somalia’s economic resilience and fostering sustainable development.

Minister Egeh praised the U.S. support, describing it as “a springboard for Somalia’s transformation.”

The U.S. decision underscores its commitment to Somalia’s long-term progress, with both countries looking forward to expanding cooperation on Somalia’s path to stability and economic growth.