Somalia Clears World Bank Debt, Enabling First Loans in 30 Years

Somalia Clears World Bank Debt, Enabling First Loans in 30 Years. [Image Source: World Bank]

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.

Source: Bloomberg