Back to the complete issue
Tuesday, 18 May 2021

Sudan gets USD 30 bn worth of pledges to cover bilateral, IMF debts

Sudan just got a USD 30 bn lifeline in the form of debt cancellation and funding pledges from IMF members during a conference in Paris yesterday kickstarting its debt relief program, Sky News Arabia reports. France has pledged to cancel USD 5 bn of debts Sudan owes, while Saudi Arabia has said it will scrap another USD 5 bn and Norway USD 4.5 bn.

France has also promised to give Sudan a USD 1.5 bn bridge loan to help the country pay off its IMF debts — and will offer more if necessary, as Sudan seeks relief and assistance covering its external debt bill, which the Associated Press put at almost USD 70 bn. Germany has also pledged to cover USD 110 mn of Sudan’s IMF arrears, and is offering over USD 470 mn in bilateral debt assistance, France 24 reports.

Sudan’s IMF debt clearance paves the way for access to cheaper international funding under the IMF and World Bank's Highly Indebted Poor Countries (HIPC) scheme. The country has already cleared its debt to the World Bank and African Development Bank, but had needed to clear its debts to the IMF as well — in addition to implementing a number of economic reforms — in order to qualify.

Egypt also wants to help Sudan with debt relief: Egypt will take part in an international initiative to clear Sudan’s IMF debt by allowing Sudan to tap into Egypt’s Special Drawing Rights quota at the IMF to settle its debts, President Abdel Fattah El Sisi said during a meeting with head of Sudan’s ruling sovereign council Abdel Fattah Burhan in Paris Sunday, according to an Ittihadiya statement.

Sudan, Egypt, France talk GERD: El Sisi and Burhan also discussed coordination to reach a fair agreement on GERD before Addis Ababa goes ahead with the dam’s second filling.

In a separate meeting with French President Emmanuel Macron, El Sisi reiterated Egypt’s desire to reach a “lawful, fair, and binding agreement” and said Egypt would not tolerate any threats to its water security, according to an Ittihadiya statement. The US said earlier this week that it supports the resumption of negotiations between Egypt, Sudan, and Ethiopia, but isn’t on board with Cairo and Khartoum’s proposition that it play a mediating role. Ethiopia has insisted that the AU should remain the sole mediator and indicated it would press ahead with the filling of the dam with or without an agreement.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.