Home | News    Saturday 8 October 2016

Sudan, South Sudan agree to extend agreement on debt apportionment

separation
increase
decrease
separation
separation

October 7, 2016 (KHARTOUM) - Khartoum and Juba on Thursday have agreed to extend the deadline of the “zero option” agreement on the apportionment of debt between the two countries for the second time.

JPEG - 31.5 kb
South Sudanese refugees wait at a border gate in Joda, in the Jableen locality in Sudan’s White Nile State, after arriving from the South Sudanese war zones of Malakal and al-Rank, January 16, 2014. (Photo Reuters/Mohamed Nureldin Abdallah)

Sudan inherited the entire external debt that existed prior to the secession of South Sudan in 2011. Both sides decided to reach out to creditors to obtain debt relief and if that fails will sit down to see how it can be divided using the "zero option".

In September 2012, Sudan and South Sudan signed the “zero option” agreement under which Sudan would retain all the external liabilities after the secession of South Sudan, provided that the international community gave firm commitments to the delivery of debt relief to Sudan within two years. Absent such a commitment, Sudan’s external debt would be apportioned based on a formula to be determined.

In 2014, Juba and Khartoum agreed to extend the “zero option” deadline for another 2 years till October 2016 in order to avoid immediate apportionment of debt between the two countries.

Sudan’s Finance Minister Badr al-Dain Mahmoud met with his South Sudanese counterpart Stephen Dhieu Dau on the sidelines of the annual meetings of the International Monetary Fund (IMF) and World Bank Group (WBG) in Washington on Thursday.

According to the official news agency (SUNA), the two ministers agreed to extend the “zero option” agreement and the work of the joint committees besides the banking correspondence to facilitate the flow of business operations between the two countries.

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 said the debt amounted to about US$45 billion in 2014 (79 percent of GDP), of which about 85 percent was in arrears.

JOINT COMMITTEES MEETING

Meanwhile, Sudan’s Foreign Ministry said the joint committees between Juba and Khartoum would resume its meetings in December.

Sudan’s State Foreign Minister Kamal Ismail said the meetings would discuss the implementation of the agreements signed between the two countries, pointing the meeting would also determine a timetable for the meetings of the various committees according to the concerned technical bodies.

He told SUNA that the meetings of the joint committees shall not be affected by the ongoing war in South Sudan.

In September 2012, both Sudan and South Sudan signed a series of cooperation agreements, which covered oil, citizenship rights, security issues, banking, border trade among others.

In March 2013, the two countries signed an implementation matrix for these cooperation agreements. However, the execution of the agreements didn’t go according to the plan.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.
  • 8 October 2016 07:58, by Midit Mitot

    Wululululu, I,am laughing at you zero option, Sudan is milking South Sudan seriously.

    repondre message

    • 8 October 2016 09:50, by Dinka Aliap Chawul

      Iam in total agreement with u here,this agreement was total lunacy in part of CPA, how can u pays money that were used to fight you? Sudan has exploits our resources for long during war time and we gets no shares in term of money or development,this is illogical.

      repondre message

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Wedding in Juba - How can you tell if a bridegroom works for Nilepet? 2017-02-24 05:25:41 By Deng Kiir Akok The Nile Petroleum Corporation is a national Oil and Gas Corporation, which engages in oil exploration, production and marketing. Famous for its abbreviation Nilepet has been a (...)

Bashir’s congratulation for Trump remains double-edged sword 2017-02-21 08:47:41 By Mahmoud A. Suleiman This is a note to the readers of this article about my use of the phrase double-edged sword. It means that Omar al-Bashir’s Speedy congratulation offer to Donald Trump (...)

South Sudan: Why ’NO’ for peace and ’YES’ for war 2017-02-20 20:45:12 By Tor Madira Machier The region and the International community has been on a campaign in a bid to end the civil war in South Sudan right after its inception in December 2013, yet the very (...)


MORE






Latest Press Releases


Militias of Bashir’s Regime and the Proxy War (1) 2017-02-08 21:49:09 Sudan Democracy First Group Militias of Bashir’s Regime and the Proxy War (1) War in the Blue Nile: Militias in the hunt of refugees and displaced population Introduction Throughout its rule, (...)

More refugees flee to Uganda than across Mediterranean 2017-01-25 09:15:39 January 25, 2017 Uganda welcomed more refugees last year than the total number of refugees and migrants crossing the Mediterranean into Europe. “Europe should learn from the way Uganda and other (...)

Carter Center welcomes new regulations on humanitarian affairs 2017-01-12 07:53:16 The Carter Center ATLANTA, Januarg 11, 2017 – The Carter Center welcomes the recent regulations issued by the government of Sudan aimed at facilitating humanitarian relief throughout the country (...)


MORE

Copyright © 2003-2017 SudanTribune - All rights reserved.