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Sudan’s finance minister says debt situation ‘frightening’

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January 4, 2012 (KHARTOUM) – The Sudanese finance and national economy minister Ali Mahmood sounded the warning bell over the country’s debt levels describing it as a “frightening” situation.

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Sudan’s Finance and National Economy Minister Ali Mahmood (AFP)

In a meeting with leaders of political parties Mahmood said that Sudan’s debt is increasing at an unsustainable rate which makes future borrowing for the country a difficult task.

He added that there are efforts underway to payoff foreign debts to free it from restrictions on obtaining credit.

The Sudanese official stressed that the government intends to enforce strict adherence to the 2012 budget particularly in terms of cutting spending including areas such as of ministers’ foreign travel and restructuring embassies attaches abroad.

Mahmood complained that airlines, hotels and telecommunication sectors are transferring their profits abroad in the form of hard currency causing a negative impact on the domestic exchange rate.

Since the oil-rich south seceded last July, Sudan lost its main foreign currency source causing a steep drop in the exchange rate of the pound against the major currencies. At one point the dollar traded for 4.8 Sudanese pounds which is almost twice the official rate of 2.7.

Sudan implemented an economic emergency program that is focused mainly on austerity measures.

Because of US sanctions as well as Sudan’s crippling $38 billion debt, borrowing options for the East African nation are severely limited.

Sudan and South Sudan have yet to agree on splitting up the national debt. Southern Sudanese officials have in the past said that they do not accept to share the country’s foreign debts, stressing that the money was borrowed to finance the northern army to fight southerners in the civil war.

Last month it was revealed that UK will move to cancel all of Sudan’s $1.2 billion debt by 2014.

Most of Sudan’s debt dates back to the days of president Ja’afar Nimeiri. It grew from $9 billion in 1985 to $38 billion. The majority of it is owed to the Arab Gulf States of Saudi Arabia and Kuwait.

(ST)

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  • 5 January 2012 11:07, by peace

    they should paid the debt,surely it gone up due to misusing to them to fight south’if south just push them slowly.am sure these goverment become bankrupt then the ciitizen will go on strike and that will be end of NCP.

    repondre message

    • 5 January 2012 11:51, by mohammed ali

      Don’t worry the country is not going to get bankrupt.Government all of the world are indebted;thoufh this not a good excuse but it should be a lesson to learn from!

      repondre message

      • 5 January 2012 14:22, by Pure Nationalist

        You sucked too much of our oil without a single infrastructure on our land, you put it into law not to employ S Sudanese in the economic workforces such as oil industies and other highly paid position which result in voting you out of our land, pls, don’t bark, it too early. Hunger will knock your doors soon.

        repondre message

        • 5 January 2012 14:57, by wisemen.

          That what we have been telling all the time that you will be bagging as to loan you some money

          that’s just a warning

          repondre message

      • 5 January 2012 21:58, by Born-to-Rule

        Mr. Ali, Khartuom is government is lots of troable. South Sudan is right. "Southern Sudanese officials have in the past said that they do not accept to share the country’s foreign debts, stressing that the money was borrowed to finance the northern army to fight southerners in the civil war".

        repondre message

    • 5 January 2012 19:09, by Abraham Ayom

      Sudanese Finance Ministry for you to safe your economy in the south, you must cut off the budget for purchasing military hardware which cost almost all the budget for the entire country.

      repondre message

  • 5 January 2012 16:24, by lekium

    The deficit is very poorly managed, the budget will be exceeded even at the expense of the population and useful reforms.
    film de cul


    video de cul

    repondre message

  • 5 January 2012 16:25, by lekium

    The deficit is very poorly managed, the budget will be exceeded even at the expense of the population and useful reforms.
    film de cul


    video de cul

    repondre message

  • 6 January 2012 03:27, by Daniel Buolmawei

    BREAKING NEWS: Lou-Nuer-Dinka operation against Murle has ended. 25 Nuer and Dinka kids recovered, over 80,000 stolen Nuer and Dinka cattle returned, about 900 Dinka fighters involved in the operation to coordinate military intelligencia (i.e. as military intelligent agents) accroding to the report, and 95 fighters wounded and 15 killed on the side of Lou-Nuer-Dinka. Source: SouthSudannation.com.-

    repondre message

  • 6 January 2012 12:51, by abdullah

    Things are bad, the economy in North Sudan is about to collapse, the current dictatorial regime has messed up the economy and corruption is rampant.

    repondre message

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