US Forgives $1.14 Billion Debt for Somalia

The United States has officially forgiven $1.14 billion in debt owed by Somalia, marking a significant milestone in the country's economic recovery efforts. The agreement, signed in Mogadishu between Somali Finance Minister Bihi Egeh and US Ambassador Richard Riley, represents the largest component of Somalia's total $4.5 billion debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative. This debt cancellation follows a broader trend of support for Somalia, with the US providing an additional $1.2 billion in development, economic, security, and humanitarian assistance this fiscal year. Somali officials lauded the debt relief as a turning point, enabling the nation to focus on rebuilding public services and stabilizing its economy. The debt relief is part of ongoing efforts to alleviate Somalia's crippling financial burdens that have persisted since the era of Siad Barre's dictatorship. The US remains a pivotal partner in Somalia's journey towards economic reform and growth.