Hamdouk identifies Sudan's needs: $ 8 billion and elimination from US terrorism list

KHARTOUM (Reuters) - Sudan needs $ 8 billion in foreign aid, Prime Minister Abdullah Hamdouk said on Monday, while revealing contacts with the US administration to remove Sudan from its list of state sponsors of terrorism.

The prime minister said Sudan needed $ 8 billion over the next two years to cover imports and to help rebuild the economy after months of political unrest.

In addition to that figure, Hamdouk said another $ 2 billion was needed "as a reserve of cash at the central bank to help stop the pound's deterioration."

He said he had started talks with the IMF and the World Bank to discuss Sudan's debt restructuring, and had reached out to friendly countries and funding bodies on aid.

He said he was in contact to achieve this, and the reserves in the central bank are weak and very low.

Sudan has been in economic turmoil since it lost most of its oil production in 2011 when South Sudan seceded.

"We have started contacts with donors and some parties in the bank
International debt, the International Monetary Fund and the African Development Bank, the size of the debt of Sudan about 56 billion dollars, but it is necessary to first reach understandings on the benefits of sovereign debt, which amounts to about three billion dollars, because the former regime was unable to repay.

"Access to these understandings will open the way for Sudan to benefit from debt relief programs, debt scheduling and access to grants and loans."

Contacts with Washington
In a related context, the head of the transitional government in Sudan that he is in talks with the United States to remove the country from Washington's list of states sponsoring terrorism.

Sudan's position on the list has left it isolated from the international financial system since 1993.

"We have started contacts with the United States to remove Sudan from the list of terrorism," Hamdouk said.

There was no comment from Washington, the International Monetary Fund or the World Bank on the remarks by Hamdok, who took office three days ago.

The Sudanese army ousted President Omar al-Bashir on April 11 in the wake of popular protests against his regime.

The army formed a military council to manage a transitional period, but protesters refused to take over and insisted on handing over power to civilians.

After months of bickering and protests, both sides agreed to form a body
Transition involving civilians and military, in preparation for elections within
Three years.