China forgives $6 million of Sudan’s debt
December 15, 2010 (KHARTOUM) – The government of Sudan today signed an agreement with China by which the latter would forgive 40 million Yuan ($6 million) of the debt owed to it by the East African nation.
The Minister of Finance and National Economy Ali Mahmood Hassanein said that this accord is a reflection of the strong relations between the two nations and enforcement of the mutual cooperation.
The Chinese ambassador in Khartoum Li Chengwen who signed on behalf of Beijing said that this is a step in support of the economic cooperation and stressed that his country is keen on the stability and security of Sudan.
Chengwen assured that the strong relations will continue irrespective the results of the referendum in South Sudan which will take place next January and is widely expected to create the world newest state.
The International Monetary Fund (IMF) puts Sudan’s external debts at about $35.7 billion, of which less than half is the original amount borrowed and the rest is divided between interest and late payment penalties. According to IMF, the figure is projected to reach $37.8 billion in 2010.
Sudan has long complained that political discord with the West has prevented it from joining the debt relief program known as the Heavily Indebted Poor Countries (HIPC).
Research fellow Ben Leo and his assistant Ross Thuotte from the Center for Global Development wrote in the Huffington Post this week that the Arab Gulf states of Saudi Arabia and Kuwait own most of Sudan’s debt ($6 billion and $3 billion respectively).
They further revealed that Austria, Denmark, and Belgium collectively hold $4.5 billion of Sudan’s debt.
Last week, the Russian special envoy to Sudan Mikhail Margelov expressed his country’s willingness to help Khartoum in obtaining debt relief from external creditors.
(ST)