Sudan presses U.S. on debt relief

March 15, 2011 (KHARTOUM) – The Sudanese minister of Finance and National Economy Ali Mahmood Hassanein met on Tuesday with the visiting delegation from the United States Treasury where he stressed that his country has fulfilled all the requirements for receiving debt forgiveness.

Sudan’s crippling $37.8 billion debt is among the most contentious issues discussed between the North and South as part of the post-referendum arrangements before the country officially splits next July. The disagreements centers on what portion of the debt should be carried by each side.

Hassanein told the US Treasury team led by its Middle East and North Africa office director Andrew Baukol that Sudan met all technical criteria to qualify for the debt relief program known as the Heavily Indebted Poor Countries (HIPC).

He noted that the government accomplishments include implementing an economic program and also the poverty combating strategy which he said is in its final phases.

The Sudanese official further said that the country witnessed positive political developments particularly recognizing South Sudan referendum outcome which was concluded in January.

He disclosed that a technical committee working on Sudan’s debt will travel to Washington in April for the annual IMF and World Bank meetings. Hassanein urged the U.S. to lift the economic sanctions imposed on Sudan noting previous understandings between the two countries.

The US official on his end said that he will urge the congress to adopt a legislation that would provide resources for helping Sudan with debt relief.

Khartoum reminded Washington of it promises to assist in this regard after Sudan successfully completes the referendum.

But earlier this year the U.S. assistant Secretary of State for African affairs Johnnie Carson cautioned that debt relief is not a simple procedure and will require extensive work that could last years and cited the example of Liberia after it emerged from the civil war.

Baukol called n Sudan to achieve progress on the issue of Abyei and Darfur reiterating Washington’s earlier assertions that the North African’s designation as a terror sponsor would be reviewed over the next few months.

(ST)