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


National dialogue building nation 2017-05-22 21:10:41 By Amb. Dhano Obongo Initially, I congratulate and commend H.E the President of the Republic of South Sudan, Gen. Salva Kiir Mayardit, for recognising the need for a national dialogue among 64 (...)

The raging just revolution in Darfur will continue burning until victory 2017-05-22 21:04:22 By Mahmoud A. Suleiman Author Mahmoud Yusuf says that we live in a historical stage full of serious events that will affect the future of mankind on this planet, including what is related to (...)

South Sudan: How culture of revenge inhibits development and progress 2017-05-13 08:09:39 By Steve Paterno Admittedly, revenge or the act of it is inherently human in nature. The human beings since biblical times could not dissuade from the proverbial practice of an 'eye for an eye.' (...)


MORE






Latest Press Releases


HRW denounces "collective punishment" in South Sudan’s Wau 2017-04-15 07:06:48 Human Right Watch South Sudan: New Spate of Ethnic Killings Urgent Need for Justice; UN Should Increase Patrols in Wau (Nairobi, April 14, 2017) – Government soldiers and allied militias (...)

Statement by South Sudanese Communist Party on the National Dialoguel 2017-03-22 05:44:42 The Communist Party of South Sudan On the Initiative of the National Dialogue The initiative taken by the President of the Republic of South Sudan declaring a need for a national dialogue is an (...)

An Appeal to President of the Republic of South Sudan 2017-03-15 07:22:45 Dear. Mr. President, I write to appeal to you for the release of political detainees now in the custody of the National Security Service at Jebel and other detention facilities. In doing this, I (...)


MORE

Copyright © 2003-2017 SudanTribune - All rights reserved.