France to Cancel Sudan’s $5 Billion Debt

On Monday, May 17th, 2021, French President Macronannounced France’s decision to cancel Sudan’s $5 billion debt. This announcement was made during the Paris conference held for General Abdel-Fattah Burhan, head of Sudan’s ruling sovereign council, and Prime Minister Abdalla Hamdok. Also in attendance were the heads of state of neighboring Egypt and Ethiopia, Kristalina Georgieva, IMF Managing Director, and the African Union Commission Chairman, Moussa Faki Mahamat.

The conference, aimed at marking Sudan’s reintegration into the international community after three decades of isolation, was in efforts to aid Sudan to get relief from its $50 billion external debt, allowing the country to qualify for theWorld Banks’s Highly Indebted Poor Countries (HIPC) scheme, which would reopen access to badly needed cheap international financing.

Emerging from economic sanctions and isolation under ousted former President Omar Al-Badri, Sudan had built huge arrears on its debts.

Kuwait, Sudan’s largest creditor by far at $9.8 billion, and Saudi Arabia, another major creditor, have released statements of their agreement on debt resolution discussions with Sudan.

The conference also discussed investment opportunities for Sudan, sparked by Sudan’s transitional government’s desire to transform the country’s economy.

📝: Mira-belle Ajayi x Mercedes Odunwa, Editorial Staff

📷: France’s President Emmanuel Macron (L) welcomes Sudan’s Prime Minister Abdalla Hamdok upon his arrival for a dinner at the Elysee Presidential Palace in Paris, on May 17, 2021. Ludovic Marin / AFP via Getty Images.

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