Mogadishu(SD)-In a statement issued today by the Norwegian Foreign Ministry, Norway said that it will provide 3.1 billion euros ($ 353 million) loan to Somalia.
Norway said the loan will help Somalia, to pay it’s debt to the World Bank development fund called IDA. This will enable Somalia to reopen its account with the World Bank Development Fund and get new investment loans.
It is worth noting that this loan is not directly paid to Somalia, but rather that Norway contributes to the World Bank’s development fund, and that Somalia will later be able to borrow from the World Bank Development Fund.
Somalia’s worldwide debt totals 4.7 billion dollars, and for the last few years, Somalia has been making a strong effort to secure debt forgiveness, to open the global financial markets, and to get funding and economic recovery. Somalia has passed three of the four test requirements.
Minister for Grants and Development of Norway Dag-Inge Ulstein said today that if these three loans are dealt with, Somalia will move straight into the final round of the debt-relief program for poor countries, HIPC (Highly Indebted Poor Countries Initiative).
Norway’s foreign ministry also said that the country’s debt forgiveness program will be held in Paris in early 2020, And Norway is optimistic that Somalia will be forgiven for its debts if it meets the terms of the debt agreement between Somalia and the IMF.
Norway’s Minister for Grants, Dag-Inge Ulstein, on the other hand said that Norway will pardon the $ 16 million, already owed by Somalia at the summit in Paris next year.
Norway is one of the largest donors in Somalia, and Norway gave $ 62 million last year.