Home | News    Wednesday 10 April 2013

IMF official downplays Sudan’s prospects for debt relief

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April 9, 2013 (KHARTOUM) – The deputy director of the Middle East and Central Asia department at the International Monetary Fund (IMF) Edward Jameel today warned that it will be near impossible for Sudan to secure debt relief even if it satisfied technical and economic requirements.

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IMF headquarters in Washington, D.C (AP)

Jameel who is leading a delegation currently visiting Khartoum went on to say that Sudan will not be able to benefit from the Heavily Indebted Poor Countries (HIPC) Initiative despite fulfilling its conditions unless it succeeds in convincing all 55 members of the Paris Club creditor nations whom he said have the power to slash 67% of conventional debt owed by Sudan.

He pointed out that any debt relief deal with Sudan would require the unanimous consent of all 55 countries which he suggested would be a slippery slope to climb.

“I’m not saying this is impossible but it is difficult because it is linked to political issues which requires a public relations effort with member countries” Jameel said at Sudan’s Central Bank headquarters on Tuesday.

“We have been saying very clearly that Sudan is going through a difficult time and needs to review its economy which is trapped between sanctions and debts” he added.

Jameel noted that the only reason the IMF suspended its loans to Sudan since the 1980’s is because accumulated arrears which reached $5.1 billion.

Sudan’s external debt is estimated to have grown by 27% since 2008 from $32.6 billion to $41.4 billion in 2011. The IMF forecast that the debt level will reach $43.7 billion in 2012 and $45.6 billion in 2013. The latter represents 83% of Sudan’s 2011 GDP, which was $55.1 billion.

Around three quarters of Sudan’s external debt are owed to the Paris Club of creditor nations and other non-member states. The remaining balance is equally divided between commercial banks as well as international and regional financial bodies.

Several countries such as United States, United Kingdom and Germany expressed readiness to offer debt relief but political conditions attached will likely slow down the materialization of the pledges.

Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output.

Khartoum and Juba are to sort out the issue of dividing the portion of pre-partition external debt each side will carry.

The head of Sudan’s negotiating team on post-secession issues Idris Abdel-Gader stated last month that the two countries agreed to work together to address Sudan’s debt and reach out to donors in a bid to have it written it off within two years.

Abdel-Gader added that if the exemption was not possible, then the only remaining option is to split the debt between the two countries.

(ST)

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  • 10 April 2013 04:08, by joseph-maleel

    Abdel-Gader added that if the exemption was not possible, then the only remaining option is to split the debt between the two countries.
    fuock u

    repondre message

    • 10 April 2013 04:13, by joseph-maleel

      Abdel-Gader added that if the exemption was not possible, then the only remaining option is to split the debt between the two countries.
      oh my bad i mean FUCK U

      repondre message

    • 10 April 2013 11:29, by Johndumo14

      The money khartoum borrowed from the International Monetary Fund (IMF),south sudan didnot benefit from it,the arabs used the money to develop the north e.g to build,houses,roads,hotels,bridges,eletrodams,and to buy guns and migs to kill s.sudanese,how possible the stupid people are talking about to split the debt between the two countries.Can you agree to pay some money you never spent?

      repondre message

  • 10 April 2013 07:21, by Padiet Deng Alony

    South Sudan is only to consider the debt during goverment of National unity starting from 2005 to 2011, if there is any thing taken during that time, rather then that we are not going to divide the debt. 2004 down sudan is responsible to pay that debt back because those money where used by khartoum to wage war agianst South Sudan by then.

    repondre message

  • 10 April 2013 09:08, by cbuongdit cholkua

    Holy shit!!! Jalaby,Splitting the Debt, I need a clue man or you might be out of your god damn mind. When did we start spending that money? Where and How? unless Juba is out of mind. That’s only when they are going to pay a dime of that money. But if not, Sudan spent that money on funding the genocide in Darfur. And if it used during the 80s to 2005,then its was spended on South’s genocide as well

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    • 10 April 2013 09:29, by cbuongdit cholkua

      Sudan,you have dig her own grave so deal with it.Or let Bashir peacefully surrendered himself to ICC. That would be the easy solution to relief you from that mountain of debt that you burry yourself in. We still have to talk about PIPELINE which was built by using our resources. Leave alone about that nonsence of debt that we don’t even know nothing about it.

      repondre message

      • 10 April 2013 18:39, by Oppressor

        Have you ever heard of arresting a country by IMF police funny it is a Bad debt & Sudan will pay nothing whether Jointly or Separately ..IMF will wait in VAIN.

        repondre message

  • 10 April 2013 10:27, by steven

    Bad news. The financial situation will have strong bad impact on prosperity of the country.

    repondre message

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