Official: Saudi Arabia Pushes for Sweeping Sudan Debt Restructuring
RIYADH (Reuters) – Saudi Arabia will press Sudan’s creditors to reach a broad agreement to reduce the African country’s $50 billion-plus debt pile, said a Saudi official who will be directly involved in the debt-restructuring talks.
Sudan’s transitional government, led by Prime Minister Abdalla Hamdok, is battling a crippling economic crisis and pushing through aggressive reforms as it seeks relief from the debt owed to foreign states, international financial institutions, and commercial creditors.
"In terms of restructuring, we will push the envelope more for everybody to restructure (debt) and provide Sudan with greater breathing space and support for the reforms,” the Saudi official told Reuters on condition of anonymity ahead of a Paris conference on Monday to promote investment and debt relief for Sudan.
"Deferral alone is not going to help … I would be looking for friends like Saudi Arabia and others to provide (debt) haircuts. We will support whatever efforts there are in the international community to provide that.”
Saudi Arabia is Sudan’s third-largest creditor with about $4.6 billion in debt, International Monetary Fund figures show.
Sudan is eligible for debt relief under the IMF and World Bank’s Highly Indebted Poor Countries (HIPC) initiative.
After clearing its arrears with the World Bank and African Development Bank, the remaining hurdle for Sudan to reach the HIPC’s so-called "decision point” is the clearing of its IMF arrears. That point could be reached by the end of June.
Sudan’s transitional government, led by Prime Minister Abdalla Hamdok, is battling a crippling economic crisis and pushing through aggressive reforms as it seeks relief from the debt owed to foreign states, international financial institutions, and commercial creditors.
"In terms of restructuring, we will push the envelope more for everybody to restructure (debt) and provide Sudan with greater breathing space and support for the reforms,” the Saudi official told Reuters on condition of anonymity ahead of a Paris conference on Monday to promote investment and debt relief for Sudan.
"Deferral alone is not going to help … I would be looking for friends like Saudi Arabia and others to provide (debt) haircuts. We will support whatever efforts there are in the international community to provide that.”
Saudi Arabia is Sudan’s third-largest creditor with about $4.6 billion in debt, International Monetary Fund figures show.
Sudan is eligible for debt relief under the IMF and World Bank’s Highly Indebted Poor Countries (HIPC) initiative.
After clearing its arrears with the World Bank and African Development Bank, the remaining hurdle for Sudan to reach the HIPC’s so-called "decision point” is the clearing of its IMF arrears. That point could be reached by the end of June.