Somali media revealed a new US decision to exempt Mogadishu from the debts owed to it, after the US Congress approved a decision to that effect.
As part of the Federal government’s year in USA-end spending package or “minibus,” Congress passed the first phase of debt relief for Somalia.
The Human Development Index ranks Somalia among the 5 least developed countries on earth, possibly the poorest country on the African continent, Somalia has a 73% extreme poverty rate.
“Canceling Somalia’s debt could mean women’s empowerment, kids going back to school and moving forward measures to end extreme poverty,” noted LeCompte who serves on United Nations debt expert groups. “If President Trump signs the spending package, the US Treasury and State Departments are authorized to move forward the first phase of debt relief for the African country.”
Somalia owes about $4.6 billion in debt. The United States is the largest creditor holding $1.1 billion in Somalia debt. The majority of the remainder of the debt is held by the International Monetary Fund, World Bank, France and Italy.
Somali economists welcomed this decision by Washington, and demanded that other countries lead similar initiatives.