Sudan presses World Bank on debt relief
September 1, 2010 (KHARTOUM) – The Sudanese government on Wednesday urged the World Bank to help it write off its foreign debts, claiming “it has met all the requirements to merit relief or mitigation of these debts”, according to state media report.
According to Sudan’s minister of finance, Ali Mahmud, the government had demanded that Sudan’s foreign debts be relieved on account of “the challenges it faces after signing several peace agreements and adopting fiscal and economic reforms as well as poverty fighting and infrastructure programs.”
“If Sudan’s debts are mitigated, Sudan will rise to advanced levels” the minister told reporters. He further underlined the importance of the World Bank’s support as the country approaches the referendum on south Sudan’s self-determination.
Sudan is Africa’s largest country and third biggest oil producer in sub-Saharan Africa. The country faces potential split in January 2011 when citizens of south Sudan are due to vote on whether their semi-autonomous region should break away to form an independent nation.
The World Bank is one of Sudan’s major debtors who also include Kuwait, Saudi Arabia, Austria, the United States and the International Monetary Fund (IMF).
Sudan has long complained that political rift with the West has prevented it from taking advantage of the debt relief initiatives offered to countries with high debt and poverty levels.
In a report released last month, the IMF stressed the urgency of rebuilding Sudan’s sharply declining reserves of foreign currency and advised the country to observe patience on its pursuit for debt relief and undertake further measures to keep borrowing under control.
“Sudan’s record of cooperation on economic policies and payments to the fund augur well for the clearance of Sudan’s arrears at the appropriate time. In the meantime, the authorities should minimize to the extent possible the contracting or guaranteeing of non-concessional debt, as such borrowing would further weaken debt sustainability. Staff urges the authorities to make payments to the Fund on a regular basis to ensure meeting the payments target for 2010.”
Official figures put the country’s external debt as of December, 31 2009 at about $35.7 billion. A little less than half of that amount is the original amount borrowed and the rest is divided between interest and late payment penalties. That figure is projected to reach $37.8 billion in 2010, the IMF said.
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Samani
Sudan presses World Bank on debt relief
The Majority of that debt was borrowed during the Numeri era. I do not see any reason why our government in the North should pay it all. It was one country back then when the loans were accepted – tough we all have to share it now.
The world bank should understand something – we do not need debt relief so we can borrow more – maybe the south will have to – hahah. But not the North. It is so we do not have this burden on our backs for years to come.
Samani
South Sudan’s Aweil region swamped by floods
P.S HERE IS AN IMPORTANT STORY ON THE NEWS THE LAST 3 DAYS
THAT SUDANTRIBUNE ‘FORGOT’ TO MENTION
Some 57,000 people have been forced from their homes because of dramatic floods in south-western Sudan over the past month, health officials say.
Heavy rains have left Aweil, the main town of Northern Bahr al-Ghazal province, largely under water.
A BBC correspondent says the floods pose another challenge to the already delayed voter registration.
Southern Sudan is voting on whether to secede from the north in a referendum in January.
Challenge
The BBC’s Peter Martell in Southern Sudan says the floods add to the woes of a grossly under-developed region still struggling to rebuild itself after the brutal two-decade war with the north.
“The rains are going to continue up until October, so the situation may get worse,” Southern Sudan’s Health Minister Luka Monoja warned.
“A serious situation has developed in Aweil – more than three quarters of the town is flooded and so many houses collapsed.
“We saw that all the people were chased out of their houses, and were now living on the road, because the road is the only area in the town that is raised.”
Our reporter says the southern government and aid agencies have been working to support those displaced, but the challenge is enormous.
The United Nations has already provided some kind of food assistance to almost half the population of the south this year, he says.