ADB bank approves framework to clear Somalia’s debt

The African Development Bank has endorsed Somalia’s donor-supported plan to settle its debts, owed to the lender./COURTESY

The African Development Bank and African Development Fund on Friday approved a framework  for 122.55 million dollars to help clear Somalia’s arrears and pave way for the Bank to re-engage with Somalia open opportunities for enhanced financing for the war-ravaged country.

The historic Framework for Somalia’s Arrears Clearance and a Policy-based Operation was approved at a meeting of the Boards of Directors.

The framework is premised on Somalia having secured donor support to clear all arrears to the Bank, which will result in the lifting of sanctions on the country, and opening up of new finance opportunities.

In response, Somalia’s finance minister Abdirahman Beileh, said, the bank  had accompanied Somalia through the difficult reforms which will see the country strengthen its economy within the competitive region.

ADB is a key stakeholder in the growth of African countries’ economies including Kenya as it plays key roles in key infrastructure project financing and economic development.

Kenya is major beneficiary of the bank’s endorsement for credit as well as financing.