Mogadisho(Somaliland Mirror)-Somalia’s External Debt at End of December 2017 stands at $4.6 Billion. Largest stake is with Paris Club Creditors at 54%, Non-Paris Club Creditors 13% and remaining Multilateral creditors at 33%.
Somalia’s top five largest creditors are the US (22%), Italy (13%), France (9%), the World Bank (11%) and the International Monetary Fund (IMF) (7%)
The Somali government will be going through long process for the next four years to remove it’s dept.
If successful this could drive Somalia into new era of prosperity, economic recovery, and growth.
Debt relief could unlock resources for development and pro-poor development projects.
Most of Somalia’s debts were created 40 years ago through irresponsible borrowing, and as a result Creditors are blocking Somalia from getting finance.
Somalia remains one of only three countries awaiting cancellation of debt under heavily indebted countries initiative.
World Bank and IMF,are urged by the Somali government to match their fine words about eradicating poverty with action to help one of the world’s most fragile states.