Kuwait City,Kuwait - The Federal Government of Somalia has signed a significant debt relief agreement with the Arab Monetary Fund, signaling the resumption of full cooperation between the two entities after years of suspension.
The agreement, valued at $306.5 million, was signed on Wednesday by Somalia’s Minister of Finance, Biixi Imaan Cige, and the Director General of the Arab Monetary Fund, Fuad M. Al-Turki, during the Annual Meeting of Arab Financial Institutions held in Kuwait City.
According to the Somali Ministry of Finance, this agreement is the result of three years of negotiations and marks a critical step toward economic recovery and access to new development financing opportunities. It also enables Somalia to benefit from various support programs that had been previously halted.
“This agreement makes it possible for Somalia and the Arab Monetary Fund to officially restore their working relationship, which had placed a freeze on essential aid and project funding,” said Minister Bihi Iman Egeh. He emphasized that the deal will pave the way for Somalia to secure vital infrastructure and development projects.
The Ministry also noted that the restored partnership will allow Somalia to participate more fully in regional economic initiatives backed by Arab financial institutions — a move expected to boost growth, job creation, and long-term development.
