Norway Waives $1.8 Million Debt Owed By Somalia
The Norway government has pardoned the Somali government for $1.8 million following a bilateral agreement between Norway and Somalia.
In a statement, Norway Minister of Foreign Affairs Ine Eriksen Søreide said NOK 16.2 million of Somalia’s debt to Norway will be cancelled.
‘By waiving Somalia’s debt to Norway, we are promoting sustainable development, stability and poverty reduction in one of the world’s most vulnerable countries,’ said Minister of Foreign Affairs Ine Eriksen Søreide.
In March, Norway provided a short-term bridging loan of NOK 3.4 billion to Somalia to clear Somalia’s debt arrears to the World Bank’s International Development Association (IDA).
The bridging loan, which was repaid the same day, was part of a multilateral, coordinated process that helped enable Somalia to qualify for debt relief under the HIPC Initiative and re-establish access to loans from the multilateral financial institutions and development banks.
Somalia’s debt has been forgiven by international countries and financial institutions and France’s move to pardon Somalia comes as a result of financial reforms and Somalia’s success in debt relief talks.