Minister Egeh highlighted the pivotal role played by the Saudi Arabian government in facilitating the discussions that expedited the debt settlement process. “We have reached an agreement to settle the outstanding USD 36 million arrears with the OPEC Fund today. We are grateful for the support from the Kingdom of Saudi Arabia with the bridge loan to facilitate this,” he said. The agreement is seen as a key achievement in the broader debt relief negotiations, which aim to bolster Somalia’s macroeconomic stability and unlock new development resources from the OPEC Fund.
The agreement positions Somalia to participate in OPEC Fund’s development projects, similar to other African developing countries, and builds on the significant progress made in December 2023. At that time, the International Monetary Fund and the World Bank approved $4.5 billion in debt forgiveness for Somalia following the country’s completion of extensive financial reforms under the Heavily Indebted Poor Countries Initiative (HIPC). Launched in 1996, the HIPC initiative helps the world’s poorest countries achieve debt sustainability, and Somalia’s inclusion is a testament to its efforts to stabilize and grow its economy.
