This comes as part of a debt forgiveness initiative overseen by both organizations.

The East African country stands as one of the poorest globally, grappling with the aftermath of decades of civil war. Approximately 70 percent of its population lives on less than $1.90 a day.

“This debt relief will facilitate access to critical additional financial resources that will help Somalia strengthen its economy, reduce poverty, and promote job creation,” the IMF said.

The approval comes as Somalia achieved the "completion point" of the Heavily Indebted Poor Countries Initiative (HIPC), the fund stated.

Somalia's external debt decreased from 64 percent of gross domestic product in 2018 to less than six percent of GDP by the end of 2023.

Debt service relief has been granted by the IMF, International Development Association, African Development Fund, and other multilateral, bilateral, and commercial creditors.