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The Guardian - UK

World

Faisal Ali

US cancels $1.1bn of Somalia’s debt in ‘historic’ financial agreement

Somalia United States Siad Barre International Monetary Fund Mogadishu World Bank

A soldier with a heavy machine gun in front of a blue and white Somalian flag — Most of Somalia’s debt was built up during Siad Barre’s military dictatorship and the ensuing civil war, which lasted three decades. Photograph: Schalk van Zuydam/AP

Somalia has announced that more than $1.1bn (£860m) of outstanding loans will be cancelled by the US, a sum representing about a quarter of the country’s remaining debt.

The announcement is the latest in a series of agreements in which Somalia’s creditors have committed to forgiving its debt obligations.

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