Sudan closer to debt relief with US loan to clear World Bank arrears
Sudan has settled its debts with the World Bank after nearly three decades, moving the heavily indebted African country closer to a much-needed international debt-relief package, the World Bank.
World Bank President David Malpass said the move meant Sudan could now access nearly $2 billion in grants from the Bank’s International Development Association.
Clearing the arrears, which date back to the years of ousted autocrat Omar al-Bashir and earlier, was made possible through a $1.15 billion bridge loan from the US government.
The Sudanese government said $215 million would be immediately available for much-needed budget support and $420 million for the Sudan Family Support Programme. US Treasury Secretary Janet Yellen said Sudan deserved credit for implementing what she called a “robust economic reform program”.
A source familiar with the matter said Sudan’s overall debt includes about $2.8 billion owed to the World Bank, International Monetary Fund and African Development Bank; $19 billion owed to countries in the Paris Club of official bilateral creditors; $21 billion to non-Paris Club members; and the rest to commercial creditors.
