Somalilandsun:Several decades of civil war since the ’90s have contributed to the economic instability and aggravation of Somalia’s foreign debt problem.
In turn, this burden has forced many low-income countries, like Somalia, to divert significant portions of their budgets into debt repayment, leaving fewer resources for essential services such as health and education.
Thus the cancellation of it’s $1.14 billion outstanding debt to the U.S. a figure that represents nearly a quarter of Somalia’s foreign debt, will help mark a significant milestone in somalia’s efforts to recover from years of economic instability.
This is according to a report by Hannah Dunford for the Borgen project titled US agreement cancells a quarter of Somalia’s foreign debt
