Sudan says some countries proposed a debt relief conference

April 24, 2013 (KHARTOUM) – The Sudanese finance and national economy minister Ali Mahmood Abdel-Rasool disclosed today that his country received an “international proposal” to organize a conference that would discuss ways to provide Khartoum with debt relief.

But Abdel-rasool who spoke to reporters following his return from the United States, where he participated in meetings of the International Monetary Fund (IMF), said that some countries opposed such a summit on the grounds that it is too early and that more time is needed to monitor progress of Khartoum-Juba in implementing their cooperation agreements signed last year.

The minister said that the U.S. was one of the countries opposed to the idea of the conference while UK and Italy gave “encouraging” signals.

He went on to say that debt relief for Sudan requires more political efforts than technical ones which he said that Khartoum already satisfied.

This month an IMF official said that Sudan will not be able to benefit from the Heavily Indebted Poor Countries (HIPC) Initiative despite fulfilling its conditions unless it succeeds in convincing all 55 members of the Paris Club creditor nations whom he said have the power to slash 67% of conventional debt owed by Khartoum.

He pointed out that any debt relief deal with Sudan would require the unanimous consent of all 55 countries which he suggested would be a slippery slope to climb.

North and south Sudan are to work jointly on efforts to cancel the external debt owed by the once-united nation in a bid to have it written it off within two years.

If that fails the two sides will have to seek a formula on splitting up the debt which in the past appeared to be a thorny issue.

Sudan’s external debt is estimated to have grown by 27% since 2008 from $32.6 billion to $41.4 billion in 2011. The IMF forecast that the debt level will reach $43.7 billion in 2012 and $45.6 billion in 2013. The latter represents 83% of Sudan’s 2011 GDP, which was $55.1 billion.

(ST)