Overview

• Somalia has secured a $4.5 billion debt relief deal from international creditors, including the International Monetary Fund and World Bank, as part of the Heavily Indebted Poor Countries initiative.
• The deal will reduce Somalia's external debt from 64% of GDP in 2018 to less than 6% of GDP by the end of 2023.
• The U.S. Treasury intends to cancel 100% of Somalia's remaining claims and urges other bilateral creditors to do the same.
• Debt relief will allow Somalia to develop economically, take on new projects, and attract new investors.
• The deal is a significant milestone for Somalia, which has been working towards debt relief for nearly a decade across three political administrations.