Sudan’s global external debt is estimated at $ 70 billion and the 22 member countries of the Paris Club urged other lenders to offer similar forgiveness.
Lending countries have agreed to cancel $ 14.1 billion in Sudan’s international debt, praising its economic reforms and efforts to fight poverty.
In a statement Friday, the Paris Club of Creditor Nations also announced that it had rescheduled Sudan’s remaining $ 9.4 billion debt with the group and offered the possibility of reducing debt in the future.
Sudan’s global foreign debt is estimated at $ 70 billion. The Paris Club, a group of 22 nations lending to governments that need it, urged other lenders to offer a similar pardon.
On his Facebook page, Sudanese Finance Minister Gebreil Ibrahim congratulated the Sudanese people on this development, promising to work to reach similar or “even better” agreements with other creditors outside the Paris Club.
Friday’s announcement came after the International Monetary Fund announced last month a $ 1.4 billion debt relief package for Sudan and France canceled Sudan’s $ 5 billion debt in a effort to support the country’s transitional leadership and help its paralyzed economy.
The joint military-civilian government of Sudan, which has ruled the African country since the popular uprising, has taken a number of bold steps to try to revive a battered and distorted economy where smuggling abounds. This includes floating their currency, starting to deal with heavy government subsidies, mostly on fuel, and seeking investments from international donors.
But some measures threaten to further impoverish some of the country’s poorest and have pitted opposition from pro-democracy activists who led the popular uprising against autocratic President Omar al-Bashir, who ruled the country for nearly 30 years. years.
The uprising led to the overthrow of Al-Bashir by the army in April 2019. The country has since followed a fragile path to democracy, with daunting economic challenges posing a major threat to this transition.
Sudan became an international pariah after being put on the list of state sponsors of “terrorism” in the United States in the 1990s.
Former President Donald Trump blacklisted Sudan after transitional government agreed to pay $ 335 million in compensation for victims of Osama bin Laden’s attacks on al-Qaeda’s network while the leader lived to Sudan.
The dismissal was also an incentive for Sudan to normalize ties with Israel.