Most of Sudan’s debt dates back to the days of late president Ja’afar Nimeiri. It grew from $9 billion in 1985 to approximately $41 billion in 2012. The majority of it is owed to the Arab Gulf states of Saudi Arabia and Kuwait.
In 2012 Sudanese finance minister, Ali Mahmood Abdel-Rasool, disclosed that Sudan pays $600 million in debt repayments to Arab sovereign funds which he said is a tiny fraction of the overall external debts with interest.
The International Monetary Fund (IMF) released figures in September 2012 showing that Sudan’s debt will reach $45.7 billion in 2013 up from $39.5 billion in 2010.
The government in Khartoum is legally obligated to honor the entire debt despite the secession of South Sudan in July 2011 following the results of a referendum held six months prior to that under the terms of the 2005 Comprehensive Peace Agreement (CPA) which allowed Southerners to decide whether to remain united with the north or create their own independent state.
Sudan in South Sudan signed an agreement in Addis Ababa in September 2012 that Khartoum and Juba will work jointly to seeking debt relief from international creditors. If these efforts are unsuccessful the two sides will sit down again to decide on how to split the debt.
The following ads are provided by Google. SudanTribune has no authority on it.