Sudan reaches new deal with China to reschedule debts
December 21, 2014 (KHARTOUM) – A Sudanese official concluded a visit to China this week after which he announced that the two countries reached new understandings to reschedule Khartoum’s debts allowing it to repay under a more convenient timeline.
The minister attributed the delay in Sudan paying its debts to the secession of South Sudan, and also announced an agreement between Khartoum and Beijing to resume the flow of financing and remittances from China to a number of development projects in Sudan by directing banks to facilitate the procedures.
Last year, the IMF said that Sudan’s debt will hit $44.7 billion in 2013 which amounts to 87.6% of its Gross Domestic Product (GDP). It urged Sudan at the time to work with South Sudan on the issue of debt that existed under the pre-secession Sudan, which has currently been inherited by Khartoum.
On December 12th, the Sudanese minister of minerals Ahmed Mohamed Sadiq al-Karuri who chaired his country’s in meetings of the Sudanese-Russian Joint Ministerial Committee, declared that Moscow agreed to write off $17 million debt owed by Khartoum.
In a related issue, the state minister of finance said he signed agreement with Chinese SZZ corporation for constructing the new Khartoum airport in three years for $700 million to be repaid by Sudan in 20 years including a five years grace period.
He pointed out that this amount is the largest Sudan ever received in one lump sum adding that they also reached an agreement on several other development projects in the areas of roads and electricity that is funded separately.
The official also revealed an agreement with CNBC corporation that specialises in manufacturing trains to forge partnerships in the areas of trade and the agreement with the China Import and Export Bank to facilitate the work of the joint ventures.
(ST)