The Government has proposed that Norway should provide a short-term bridging loan of NOK 3.135 billion to Somalia in 2020 to clear Somalia's debt arrears to the World Bank's International Development Association. Technically, this is a loan to Somalia, but the funds will be transferred to a World Bank account. The World Bank will then grant Somalia a new loan, which will be used immediately to repay the bridging loan from Norway.
'Following several decades of civil war, the situation in Somalia has stabilised in the last few years. The authorities have implemented a number of important political and economic reforms, but the country is still in a vulnerable situation. This loan from Norway will be an important contribution to the work to promote reform and stabilisation in Somalia,' said Minister of Foreign Affairs Ine Eriksen Søreide.
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