Somalia reaches an agreement with the OPEC Fund to settle debts worth $36 million

Somalia reaches an agreement with the OPEC Fund to settle debts worth $36 million

 The Somali government has reached an agreement with the OPEC Fund for International Development to settle outstanding debts worth US$36 million. Somali Finance Minister Bihi Iman Aghi, who signed the agreement in Vienna, stated that the Saudi government played an important role in facilitating the discussions, which led to accelerating the debt settlement process.

Aghi explained that the agreement is another milestone in the ongoing successful negotiations to reduce the debt burden and support macroeconomic stability and economic recovery in Somalia. He pointed out that this step will make Somalia eligible to participate in development projects affiliated with the OPEC Fund for International Development, similar to other developing African countries.

In December 2023, the IMF and World Bank agreed to forgive $4.5 billion in debt for Somalia after the Horn of Africa country completed years of financial reforms under the Heavily Indebted Poor Countries (HIPC) initiative.