Somalia and the Arab Monetary Fund (AMF) have signed a memorandum of understanding (MoU) as part of the Fund’s efforts to support member countries and promote financial stability.
“The MoU aims to restructure the debt owed by Somalia to the Fund, thereby contributing to easing the financial burden and strengthening Somalia’s ability to stay on course with economic reform and sustainable development,” the AMF said in a statement on Wednesday, April 9.
“It is worth noting that Somalia’s debt has spanned over 40 years, and this adjustment is part of the AMF’s new strategy aimed at supporting Arab countries,” it added.
The chair of the AMF’s board said the organisation was committed to supporting its member nations and facilitating an environment conducive to achieving economic stability and growth.
Somali finance minister Bihi Egeh said the MoU was part of a debt relief agreement with the AMF amounting to around $306.5 million.
“This agreement was crucial to Somalia’s debt relief efforts and fundamental to re-engagement with the Fund to progress our partnership for achieving sustainable development and economic growth in the country,” he said on X (formerly Twitter) on Wednesday.
“The Arab Monetary Fund remains a strong supporter of our national development objectives, and we look forward to deepening our ties going forward,” he added.
The AMF is an Abu Dhabi-headquartered regional Arab organisation founded in 1976.
Its 22 member countries include Somalia, Sudan and Djibouti.
Somalia has received debt relief under the World Bank and the International Monetary Fund’s Heavily Indebted Poor Countries Initiative in recent years. external debt from around 64% of GDP in 2018 to about 6% by the end of 2023
