Paris Club of creditor nations agrees on 99% debt cancellation for Somalia to relief the country's economy amid ongoing conflict

In order to contribute to restoring the debt sustainability of the Federal Republic of Somalia, Paris Club creditors committed to cancel USD 1.2 billion in nominal terms under the Enhanced HIPC Initiative framework.

In addition, Paris Club creditors confirmed their willingness to grant additional debt cancellation on a bilateral basis for an amount of USD 815 million.

The Paris Club consensus and the expected additional bilateral efforts would result in a reduction of more than USD 2.0 billion, representing 99% of the debt of the Federal Republic of Somalia owed to Paris Club members as of January 2023.