Somalia Settles $36 Million Debt with OPEC Fund, Thanks to Saudi Arabia's Support

VIENNA - Somalia has successfully reached an agreement to settle its outstanding $36 million USD arrears with the OPEC Fund. This significant milestone was made possible with the support of Saudi Arabia, which provided a bridge loan to facilitate the settlement.

The agreement marks a new chapter in Somalia's ongoing debt relief negotiations, aimed at enhancing the country's macroeconomic stability and fostering economic recovery.

The signing of this agreement is expected to unlock new resources from the OPEC Fund, which will be used to support Somalia's national development. This positive development comes as a result of the successful debt relief negotiations, which have been ongoing for some time. With the support of Saudi Arabia and the OPEC Fund, Somalia is well on its way to achieving greater economic stability and growth.

Saudi Arabia, the OPEC Fund, and Somalia have entered into a tripartite agreement aimed at supporting Somalia's economic recovery, according to a statement released during the OPEC Fund Development Forum and Ministerial Meeting in Vienna.

The agreement was signed by Saudi Finance Minister Mohammed al-Jadaan, Somalian Finance Minister Bihi Egeh, and OPEC Fund President Abdulhamid al-Khalifa.

The deal aligns with the International Monetary Fund and World Bank's initiative to manage debt in low-income countries, aiming to ensure no poor country faces an unmanageable debt burden. The agreement comes as Somalia faces challenges from the al-Qaeda-linked al-Shabaab group and internal conflicts over resources.

During the event, al-Jadaan emphasized the importance of each country's actions in achieving sustained economic development. He also highlighted Saudi Arabia's efforts to diversify its economy and boost non-oil revenues as part of its Vision 2030 plan, which includes labor market reforms, investment in education, and support for small and medium-sized enterprises.

The OPEC Fund, established by OPEC member states in 1976, recently inaugurated its expanded headquarters in Vienna, reinforcing its commitment to supporting low-income countries and addressing basic human needs such as food, energy, clean water, healthcare, and education.

GAROWE ONLINE