Russia has written off $48.1 million of Somalia’s debt, stemming from loans granted during the Soviet era.
According to an official document published on December 10, an agreement has been signed between the two countries on this matter.
Agreement Details
• The debt originates from long-term loans provided by the Soviet Union to Somalia up until October 1, 1984.
• The total amount of the debt, including accumulated interest, has been completely written off.
• The document states, “100% of the said amount will be consolidated, and the Federal Government of Somalia will be fully exempted from repaying this debt.”
Payment Plan and Remaining Debt
While the agreement grants Somalia relief from its financial obligations, a plan has been established for the remaining debt to be repaid by April 2028.
This development is seen as part of Russia’s efforts to strengthen relations with Somalia and increase its diplomatic influence in Sub-Saharan Africa. For Somalia, the debt relief provides an opportunity to allocate more resources to its economic development initiatives.
