France declares readiness to grant bridging loan of up to $ 1.5 billion to clear IMF arrears in Sudan
France is ready to provide a bridging loan of up to $ 1.5 billion to clear Sudan’s arrears to the International Monetary Fund and bring the country closer to obtaining relief on much of its debt , said a French diplomat on Wednesday.
Sudan hopes to qualify for the Heavily Indebted Poor Countries (HIPC) debt relief initiative in June as its civilian transitional government battles a crippling economic crisis.
It calls for at least $ 50 billion in foreign debt relief owed to international financial institutions, official bilateral creditors and commercial creditors.
The African nation has already secured bridging loans from the United States and Britain to clear arrears to the World Bank and the African Development Bank. learn more About 85% of the debt is past due.
“We are quite optimistic, France is ready to grant a bridging loan of 1.3, 1.4, 1.5 billion dollars – all that will be necessary for the repayment of the IMF,” said Ambassador Jean- Michel Dumond, France’s special envoy to Sudan and South Sudan. a virtual panel hosted by Chatham House.
“The Sudanese debt is higher than the 56.57 billion dollars officially recorded, it is something between 60 and 70 billion dollars,” said Dumond, adding that the Paris conference would register the debt relief commitments but would not make a final decision.
Sudan is emerging from decades of economic sanctions and isolation under former President Omar al-Bashir, who was ousted by the military after months of popular protests in April 2019.
Military and civilian groups share power in a transitional arrangement that will last until the end of 2023.