Somalia’s external creditors urged to cancel its debt to help rebuild

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MOGADISHU, Somalia –  The Somalia’s external creditors was asked to cancel its debt to help rebuilding after 32nd session of the assembly of heads of states of the African Union in Ethiopia.

The African Union urged Somalia’s external creditors, especially the International Financial Institutions (IF1s) that have pledged financial support to step up their good faith efforts to accelerate the normalization of financial relations with Somalia to fulfill their promises.

The head of states of African Union expressed its full support and continued solidarity with the Somali people relations with external creditors and full debt cancellation; and their government in their quest for normalization of financial

The leaders of African Union also noted resolving its external debt problem through establishing with satisfaction the Somali government’s commitment to including Somalia financial governance and through the implementation of much good economic and Somalia’s third IMF Staff Monitored Programme much needed reforms, ending mid-2019.

“We are aware a number of AU Member States are among Somalia’s external creditors”, said in an online statement seen by Mareeg Online.

The African Union’s statement also called Somalia’s external creditors to fully cancel Somalia’s debt obligations in the spirit of solidarity and requests that the Commission facilitate debt cancellation discussions between Somalia and AU Member State creditors.

We call on Somalia’s external creditors to fully cancel Somalia’s debt obligations as a means of relieving the country of a future debt servicing burden that may hinder its transition from conflict to peace and sustainable development”, the African Union said.

The statement further said years of conflict in Somalia have resulted in the accumulation of arrears owed to external creditors, including bilateral and multilateral creditors, constraining the ability of Somalia to obtain external resources for reconstruction and development.

Somalia is among the last remaining eligible countries which are still to benefit from the Heavily Indebted Poor Country (HIPC) Debt Relief Initiative, an internationally agreed upon framework for providing comprehensive debt relief to low-income countries that qualify for the Initiative.

In a statement seen by Mareeg Online said the Heads of States are aware of the need for Somalia to normalize its financial relations with external creditors, thus unlocking financial resources for the country’s stabilization, reconstruction, development and poverty reduction, including for the provision of durable solutions for displaced Somalis.

 

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