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Puntland opposes Somalia’s debt program

Garoowe March 15, 2023 (SD) – The Puntland government stated that it will not support the Federal Government of Somalia’s plan to acquire new debt from international organizations and countries.

The government argues that the debt will burden future generations and that the federal government should instead focus on attracting foreign investment to generate revenue.

“We do not support the borrowing of loans from international organizations or countries that will burden future generations of Somali children,” said the Minister of Planning of Puntland.

Mohamed Siad Faroole, stated that Puntland will send a letter to international debt relief agencies urging them not to provide loans to Somalia.

He also stressed the need for the federal government to use existing laws to attract foreign investment. This statement from Puntland comes as the Federal Government of Somalia is pursuing a new debt relief program and working with the International Monetary Fund (IMF) to establish a new economic program. However, Puntland argues that the federal government should prioritize debt relief instead of acquiring new debt.

President Hassan Sheikh Mohamud has previously stated that his government is committed to promoting the country’s economic growth and that foreign investment is necessary to achieve this goal.

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