Paris Club agrees to terminate Somalia debt

The Paris Club creditors on Wednesday approved to terminate more than $2 billion of debt Somalia owed to its members in a proposal to support it rebuild its debt sustainability.

The debt aid signifies 99 percent of the credit Somalia owed to Paris Club members as of January 2023, according to a statement published by the creditor group.

Paris Club members is an informal group of creditor nations whose objective is to find effective solutions to payment obstacles encountered by debtor nations.

“Creditors welcomed and supported the commitment of Somalia to seek a treatment at least as favorable from all its other official bilateral and external commercial creditors,” the statement said.