The US government has canceled Somalia’s debt after the Congress approved a bill in this regard.
Somalia-born Congresswoman Ilhan Omar said that the debt relief package was a major milestone that validates the incredible progress that Somalia has made in the past several years.
“I am thrilled we were able to secure debt relief for Somalia today. This doesn’t just have an impact on Somalis in Somalia, but on the thousands of Somali- Americans who live in my district and have family in the region,” Ilhan said on her official Twitter handle.
Ilhan’s statement did not, however, indicate the amount of debt that was canceled by the US.
Somalia owes the US $1bn in arrears accrued over many years. Somalia’s entire debt stands at $4.7bn.
Norway announced in October a bridging loan approval for Somalia to allow the Horn of Africa nation arears a $350m debt owed to the World Bank.
The US move is expected to pave the way for other countries to pardon Somalia’s debts.