Minister of Finance Abdirahman Duale Beileh said the Somali Ministry of Finance is assisting its Sudanese counterpart in the international process of debt relief.
In a video conference with Sudanese finance officials, the minister shared his experience of debt relief and the surrounding IMF terms.
Beileh said Somalia was honoured to assist Sudan in the terms of the debt relief process, according to an IMF statement that Somalia should report to Sudan on its knowledge of the debt forgiveness process under IMF terms and the SMP process.
“It was an honour to share Somalia’s experience in reaching the HIPC Decision Point to achieve debt relief with our counterparts from Sudan. Reform is always a difficult journey but it is a worthwhile one which benefitted us. We are committed to and progressing with the reforms,” said minister Beileh in a twitter post.
The minister said the country’s financial reforms have been a difficult journey, noting the commitment of the Somali government to redouble its efforts to improve the financial system.
In March, the Fund, the World Bank and the African Development Bank agreed to let Somalia seek relief under the complex Heavily Indebted Poor Countries (HIPC) Initiative. The IMF’s executive board also offered a new three-year financing arrangement worth $395 million.
In April, the Paris Club of creditor nations agreed to restructure Somalia’s debt, including immediately canceling $1.4 billion.
Debt relief aims to help Somalia reduce its external debt to $557 million in net present value terms from $5.2 billion at the end of 2018 – if the nation meets targets for good governance.