São Paulo – France will grant a loan of USD 1.5 billion to Sudan to pay the country’s debts with the International Monetary Fund (IMF), according to an announcement made this Monday (17) during the International Conference in Support of Sudan, which took place in Paris. In the photo above, French president Emmanuel Macron (center), Sudanese president, Abdel Fattah al-Burhan (left), and Sudanese prime minister Abdalla Hamdok (right) at a press interview during the conference.
The secretary-general of the United Nations (UN), António Guterres, stated at the conference that it is necessary to invest in the peaceful and sustainable future of Sudan. “Continued international support for Sudan is essential, as the country is undergoing a historic political and economic transformation,” said Guterres.
“We have a responsibility to help Sudan consolidate its democratic transition, rebuild its economy and deliver sustainable peace and development to its diverse society,” said the secretary in a video message.
The conference, organized by French president Emmanuel Macron, aimed to encourage private investors to return to Sudan as the country continues to emerge from three decades of isolation and rebuild its economy. Representatives from Arab countries, such as the United Arab Emirates and Egypt, also participated in the conference.
Political transition and debt relief
Sudan’s ongoing transition to democracy began after months of street protests that led to the ouster of ex-president Omar Al-Bashir in April 2019, who was in charge since seizing power in a military coup in 1989. At the end of 2020, the United States removed Sudan from a list of countries that support terrorism, which meant an end to sanctions for other countries trading with or investing in Sudan.
The country is also seeking support to settle its estimated USD 50 billion external debt, which includes about USD 5.6 billion owed to the IMF, the World Bank, and the African Development Bank.
France announced a USD 1.5 billion loan for Sudan to pay its debts to the IMF, hence paving the way for greater relief under the fund’s Highly Indebted Poor Countries (HIPC) initiative. The United Kingdom and the United States had previously helped to settle arrears with other development banks.
Comeback
The secretary-general declared the conference is part of ongoing efforts to bring Sudan back to the international community. He praised the countries that helped Sudan to make up for its arrears with international financial institutions, adding that “generous donor support” will be needed to achieve debt relief.
“Continued support from Sudan’s friends and partners is critical,” said Guterres. “If financial assistance and investments are not available, the dire economic situation could severely affect Sudan’s transition, with negative consequences for peace and stability in the country, the region, and beyond,” he said.
Guterres emphasized that Sudan needs investment and a sustained commitment to reconstruction, including from the private sector, while regaining eligibility for funding from international financial institutions is an important cornerstone for the country’s economic revival.
“Sudan is undergoing a historic political and economic transformation. I appeal to donors and companies to make a bold investment in Sudan’s peaceful and sustainable future,” concluded the secretary. The information is from a UN release.
Translated by Elúsio Brasileiro
