Sudan mulls selling its $35 billion debt: report

July 13, 2010 (KHARTOUM) — The governor of Sudan’s Central Bank Sabir Mohamed Al-Hassan revealed that they have received offers from unspecified parties to buy the country’s $35 billion debt.

The independent Al-Sahafa daily quoted Al-Hassan as saying that consultations are underway between the central bank and finance ministry to review the offer which he said would be paid back in Sudanese pound.

The bank governor said that the pros and cons of such a step will be analyzed noting that other countries in a situation similar to Sudan sold it debt and paid it off in local currency.

An analysis of Sudan’s debt as of December, 31 2009 showed that the country’s original debt totaled $15.4 billion, interest in arrears worth $3.8 billion and late payment penalty on the interest valued at $16.5 billion.

The total debt to non-members of the Paris Club was $13.3 billion with $11.2 billion to members of the Paris Club, $4.5 billion to commercial banks and $1.4 billion to international suppliers.

The major debtors of Sudan include the IMF, World Bank, Kuwait, Saudi Arabia, Austria and the United States.

Sudan has been unable to keep up with the monthly payments towards fulfilling the debt as the country emerged from a two decade civil war. The boom in oil exports and flow of hard currency has done little to significantly reduce the burden.

Political tensions with the West has made the latter reluctant to offer debt relief to the largest country in Africa.

Sudan is six months away from a key vote by Southerners in which they will decide whether they want to remain united with the North or create their own state. Currently the North and South are locked in negotiations over a number of post-referendum items including splitting the country’s debt.

(ST)