MOGADISHU, March 24 (Xinhua) -- The African Development Bank (AfDB) said Tuesday it has resumed full re-engagement with Somalia after Britain and EU cleared 122.55 million U.S. dollar arrears on loans owed by Mogadishu.
AfDB said the move which also marks the end of sanctions and the resumption of full re-engagement between the lender and Somalia is a historic moment for Mogadishu.
"I am absolutely delighted that the African Development Bank provided the leadership needed to push for and successfully negotiate the arrears clearance for Somalia. It was a reflection of the power of partnerships and consensus-building," the AfDB president Akinwumi Adesina said in a statement issued in Mogadishu.
The Bank said the journey to the resolution of Somalia's debt arrears began in 2014 and included the completion of three Staff Monitored Programs of the International Monetary Fund (IMF) and significant advances on a fourth program.
It said the process saw the high level of political commitment and consistent engagement of Somali leaders which translated into the implementation of reforms that gave confidence to international financial institutions.
"The settlement of the arrears of Somalia to the African Development Bank is a new beginning for us in Somalia. We stuck with our reforms, we were persistent, and it has paid off," Abdirahman Beileh, Somali finance minister.
AfDB said it will immediately provide a new policy-based operation to help boost economic growth and accelerated the development of Somalia.
The Bank's current portfolio in Somalia totals 135 million dollars, covering operations in the agriculture, water and sanitation, transport, social and energy sectors, and capacity building for multiple sectors of the economy.
