International financing institutions have joined a long list of countries that have decided to write off Sudan’s debt, with a view to consolidate the democratization process in Sudan; a country that found itself having just emerged from al-Bashir’s dark era.
Prime Minister, Abdalla Hamdok announced on Monday a complete clearance of Sudan’s arrears to the World Bank (WBG), the International Monetary Fund (IMF), and the African Development Bank (AfDB).
On Monday and Tuesday, Paris hosted an international conference to support democratic transition in Sudan, by adopting an economic path that includes debt relief and attracting foreign investment.
In a press statement following the special session to address Sudan’s debt, Hamdok expressed his happiness with the conference’s outcomes.
Hamdok emphasized that the Paris Conference allowed Sudan to present to the world with its transformation, as well as challenges and priorities.
The Prime Minister also noted that the world had listened to Sudan well. He stressed that the conference marks the start of a long-standing relationship and Sudan’s re-engagement with the international community.
Sudan will be able to restore its dealings with international financial institutions in a way that revives its ailing economy.
The local economy suffered from the heavy legacy of the former regime.
It also found no solace in the international isolation resulting Khartoum’s classification as a capital for terrorism, in addition to COVID-19 consequences.
On Monday, France, Norway, Italy and Germany announced they would all write off Sudan’s debt.
Paris has declared a full clearance of the $5 billion debt owed by Sudan, and provided $ 1.5 billion as a bridge loan.
In turn, Norway announced that, in addition to debt relief, it will work to contribute to eliminate Sudan’s debt owed by international financing institutions.
Sudan’s external debts touch the barrier of $ 60 billion, most of which are penalties for the principal debt estimated at $18 billion.
European countries hope that Sudan will traverse the turbulent transitional period, down to free and fair elections that return power to civilians by reviving its ailing economy.
Sudan is led by a transitional government, a mixture of civilians and the military, as well as the armed movements that have signed peace agreements.
“The country’s return to this group of nations should be reinforced; both economically, and politically” Macron said in his speech.
He added that the transitional period in Sudan should end “by holding free and transparent elections, with the aim of forming a civilian government.”
“We are committed to contributing to making Sudan’s transition a success”, said Norwegian Foreign Minister, Ine Eriksen Søreide in a press release.
“We have taken the decision to cancel all bilateral debt”, Eriksen added.
The conference aims to fully normalize Sudan’s relations with the international community, as well as relieving the country’s external debt, and attracting foreign investment.