Sudan: the putsch "calls into question" the cancellation of the debt by the Paris Club
Brick barricades erected by Sudanese anti-coup protesters block a lane on 60 Street in East Khartoum on October 31, 2021. AFP - -
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The military coup in Sudan “
calls into question
” the cancellation of its debt by the Paris Club.
At least that is the warning of the French Foreign Ministry, a little less than two weeks after the putsch.
Khartoum, whose external debt burden represented 163% of GDP in 2020, could however retain other aid programs.
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The cancellation of 14 of the $ 23.5 billion in debt, held by Paris Club members, was approved in mid-July, but the process is not complete, with each creditor now required to sign a bilateral agreement.
To obtain the cancellation of its debt, Sudan had to meet two conditions: clear its arrears with multilateral institutions and implement "
economic reforms showing the seriousness and the rigor of the authorities
".
In the
eyes of Paris, this process was also part, recalls the Quai d'Orsay, of its support for the democratic transition in Sudan.
If
for the French Ministry of Foreign Affairs, it is therefore "
obvious
" that the cancellation of the debt of Khartoum is called into question, the IMF, for its part, is procrastinating.
The International Monetary Fund believes it is too early to know whether General al-Burhan's coup will undermine his aid package approved in June.
He was, anyway, conditioned to review the economic situation of the country next year
.
►Also read Sudan: the actions of the military do not calm the street, the UN is worried
The IMF is also silent on debt relief.
The other Washington institution, on the contrary, reacted without delay.
The World Bank indeed suspended its aid on the day of the coup.
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Sudan
IMF
world Bank
Abdel Fattah al-Burhan