Creditor countries agreed to forgive $14.1 billion in foreign loans owed to Sudan, applauding its economic reforms and poverty-fighting initiatives. The Paris Club of creditor nations also stated that Sudan’s outstanding $9.4 billion in debt to the organization had been rescheduled, with the possibility of further debt relief in the future. Sudan’s total external debt is projected to be $70 billion.
The Paris Club, a group of 22 countries that lend to governments in distress, has pushed other lenders to do the same. Sudan’s Finance Minister Gebriel Ibrahim thanked the Sudanese people on the development on his Facebook page, promising to work with other creditors outside the Paris Club to secure similar or “even better” accords.
Last month, the IMF offered a $1.4 billion debt relief package for Sudan, in an effort to support the country’s transitional leadership and help its shattered economy.
With the intent to rebuild the African country’s shattered and distorted economy, floating its currency, beginning to address significant government subsidies, particularly on fuel, and seeking investment from international donors have been a part of Sudan’s strategy.
Sudan has been facing political and economic difficulties since former President Omar Al-Bashir was overthrown by the military in April 2019. Since then, the country has been on a shaky path to democracy, with tremendous economic issues posing a major danger to the transitional process.