World Band expects quick clearance of Sudan’s foreign debt

February 26, 2021 (KHARTOUM) – David Malpass, World Bank Group (WB) President, Friday expected quick clearance of Sudan’s external debt after the floating of its local currency.

Malpass made his remarks in a speech at a videoconference meeting of G20 Finance Ministers and Central Bank Governors on “Global Economy and Policy Actions for a Transformative and Equitable Recovery” on Friday.

The WB president said they closely worked with Sudan to unify the exchange rate of the Sudanese pound.

This reform is a structural benchmark Sudan had to implement before the cancellation of its $60 billion in foreign debt under the Heavily Indebted Poor Countries (HIPC).

“We expect rapid clearance of Sudan’s arrears to the World Bank and hope for speedy progress toward Sudan’s HIPC decision point,” he further said.

He said that the debt relief in a period of little more than a year of “two fragile states” Sudan and Somalia, would be a “landmark achievement” when it is enacted.

Malpass underscored the importance of the Sudanese decision saying that growth and investment are linked to the stability of exchange rates.

On 21 December, Sudan’s central bank on Sunday floated the local currency saying its price will be fixed by the exchange rate in the local forex market.

The central bank said the goal of this unification is to attract foreign investors and remittances of Sudanese abroad. Also, the measure will pave the way to normalize relations with regional and international financial institutions as well as making it easy to ensure grant flows and loans from these bodies.

(ST)