Somalia Clears World Bank Debt, Enabling First Loans in 30 Years
Somalia Clears World Bank Debt, Enabling First Loans in 30 Years
Somalia’s government cleared its arrears to the World Bank’s International Development Association, enabling the warn-torn nation to borrow from the lender for the first time in three decades.
Somalia repaid the debt after accessing a $365.9 million bridge loan from the Norwegian government, the World Bank said in a statement on its website. The repayment is part of a comprehensive plan for arrears clearance that also includes the International Monetary Fund and the African Development Bank.
“With this clearance, Somalia has fully re-established its access to new resources from IDA and paved the way to receive debt relief under the Heavily Indebted Poor Country and Multilateral Debt Relief Initiative to promote growth and recovery over the coming years,” the bank said.
READ: World Bank to Reestablish Financial Relations With Somalia
To contact the reporter on this story: Adelaide Changole in Johannesburg at achangole2@bloomberg.net
To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Paul Richardson, David Malingha
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