Somalia has signed a $306.5 million debt relief deal with the Arab Monetary Fund (AMF), in what the government in Mogadishu called a critical milestone in its economic reform programme.

Somalia’s Finance Minister, Bihi Egeh said the agreement was crucial to the country’s debt relief efforts and fundamental to re-engagement with the fund.

The signing, which took place in Kuwait, reflected growing international confidence in Somalia’s economic trajectory and reform efforts.

The AMF said in a statement, “The deal with Abu Dhabi-based AMF, which fosters financial stability and economic development in Arab member states, involves the restructuring of the debt owed by Somalia to the fund.”