Sudanese economy and national planning minister optimistic over debt cancellation
Aug 29, 2005 (Khartoum) — Sudan’s economy and national planning minister
Al-Zubayr Ahmed al-Hassan has expressed optimism that 90% of his
country’s debt would be cancelled following thr signing of the peace deal
between the government in Khartoum and former southern rebels on 9
January in Kenya, which paved the way for an end to Africa’s longest and
bloody armed conflict.
The minister told reporters at the weekend that the World Bank chief Paul
Wolfowitz will visit the African state later thise year, adding that the
Bretton Woods institution would soon open a permanent office in Khartoum.
The WB said earlier it was working with the International Monetary Fund
(IMF) on the question of Sudan’s arrears and debt relief in co-ordination
with a debt support group led by the United Kingdom to ensure that
Khartium’s external debt does not hinder the flow of funds from
international lenders and donors.
Sudan’s external debt is about US$21 billion, most of which is in ther
form of debt repayment arrears and interest rates.
The government of President Omar Hassan el-Bashir and the Sudan’s People
Liberation ARMY/ Movement (SPLA/M) signed a historic peace deal in
Nairobi, ending Africa’s longest running civil war that killed 2 million
persons and dispalced more than 4.5 million others internally and abroad.
World Bank’s decision to re-open its office in the Sudanese capital is
clearly timed to take advantage of the opportunities and helps sustain
the momentum for peace generated by the Nairobi peace agreement.
“Sudan should become eligible for debt relief under the Heavily Indebted
Poor Countries (HIPC) initiative,” the World Bank said in a recent press
release
Launched in 1996, the HIPC had by June 2004 reduced the debt
stock of the most indebted developing countries by two-thirds and had
approved a total of US$54 billion in nominal debt service relief.
Conflict experts say that in addition to bringing peace to Sudan, the
agreement signed last January opens the door for progress on several
other regional conflicts.
Sudan has often been cited as being at the epicenter of the conflicts in
neighbouring countries, including the fighting between the Ugandan
government and the rebel Lords Resistance Army (LRA).
Sudan’s economy has grown at an average 6 percent annually over the past
few years, in spite of the civil war. Foreign direct investments to Sudan
stood at US$645 million during the first half of 2003, up from US$230
million during the same period in 2002. Dramatic jumps to more than $5
billion were achieved in 2004 and 2005, respectively.
Under the peace deal notched after two-and-a-half years of negotiations
the Sudanese belligerents agreed on a new constitution, a power sharing
arrangement through a national unity government to be announced shortly.
The ruling National Congress will be allocated 52% of cabinet seats,
while 28% will go to the SPLA/M, and 20% to other political groups.
The existing oil wealth would also be equally divided between the country
north and south, which will each receive an estimated US$1 billion a
year.
National elections will be held in three years, while southerners will
vote in a referendum at the end of the six-year transition to determine
whether to remain in a united Sudan, secede.