Sudan secures $ 5.4 billion in debt cancellation from France and Germany
(Agence Ecofin) – Sudan has just obtained the cancellation of 5.4 billion dollars of its debt to France and Germany. The announcement was made on Monday, May 17, during the International Conference in Support of the Sudanese Transition.
In a speech at the press conference closing the meeting, French President Emmanuel Macron said his country was ready to give up money owed by Sudan. “We are in favor of outright cancellation of Sudan’s debt, which is as you know the largest among Paris Club members. We are in favor of the cancellation of nearly $ 5 billion,” declared the French president. mentionned.
The announcement comes after French Economy Minister Bruno Lemaire announced a $ 1.5 billion bridging loan to help Khartoum clear its arrears to the International Monetary Fund (IMF). This decision is part of the process of reducing the debt burden of Sudan, which hopes to benefit in the coming months from the Heavily Indebted Poor Countries (HIPC) initiative.
“To trigger Sudanese debt relief, two essential conditions had to be met. On the one hand, the settlement of Sudan’s arrears with multilateral financial institutions (IMF, World Bank, ADB), and on the other hand, the implementation by Sudan of economic reforms showing the seriousness and rigor of the new authorities. . I can tell you very clearly today that these two conditions are met. This conference is a success, and the conditions which alone made it possible to open the HIPC debt relief initiative have been met, ”declared Emmanuel Macron.
“We took our responsibilities to allow Sudan to settle its arrears […] The new Sudanese authorities have also fulfilled their part of the contract […] Everything is therefore in place and we can move forward towards launching the deleveraging process. This process will be formalized in a few weeks by the IMF […] Everyone will then be able to say what effort they can make, ”he added.
Since its removal from the list of American terrorists, Sudan has managed to settle a debt of nearly $ 1.2 billion to the World Bank, thanks to a previous bridging loan obtained from the United States. In April, $ 413 million owed to the African Development Bank (AfDB) was also repaid thanks to a joint loan from the United Kingdom and Sweden. By June, the North African country is expected to receive guarantees from several of its other bilateral creditors for debt restructuring under the HIPC initiative.
Germany has also pledged to cancel more than $ 440 million in Sudan’s debt, according to a statement from German Foreign Minister Heiko Maas. Berlin also plans to give Khartoum about $ 109 million to help it settle its arrears to the IMF.
Moutiou Adjibi Nourou