Somalia secures $4.5 billion debt relief deal with international creditors

abcnews.go.com:

Somalia has secured a $4.5 billion debt relief deal from its international creditors,

WASHINGTON — Somalia on Wednesday secured a $4.5 billion debt relief deal from its international creditors, the International Monetary Fund and World Bank said, which will allow the nation to develop economically and take on new projects.

The deal comes as part of a debt forgiveness program —called the Heavily Indebted Poor Countries initiative— overseen by both organizations. As a result of its participation in the program, Somalia’s external debt will fall from 64 percent of GDP in 2018 to less than 6 percent of GDP by the end of 2023, the IMF and World Bank say in a joint news release.

Somalia’s national debt currently exceeds $5 billion, according to official figures.

“Somalia’s debt relief process has been nearly a decade of cross governmental efforts spanning three political administrations. This is a testament to our national commitment and prioritization of this crucial and enabling agenda,” said Somalia’s President, H.E. Hassan Sheikh Mohamud in a statement.

U.S. Treasury said it intends to cancel 100 percent of Somalia’s remaining claims and “urges Somalia’s other bilateral creditors to be equally generous and to move expeditiously.”

The deal is “a significant milestone in Somalia’s path to continued recovery and meaningful reform to promote greater stability and economic opportunities for the Somali people,” U.S. Treasury Secretary Janet Yellen said.

Ali Yasin Sheikh, deputy governor of Somalia’s central bank, told The Associated Press Wednesday that debt relief under the Heavily Indebted Poor Countries initiative comes as a relief for his country, which is eager to secure new funding for public projects.

In addition, he