Saudi Arabia Promises Sudan to Reduce its Debts

Saudi Finance Minister Mohammed Al-Jadaan affirmed the Kingdom’s commitment to work with Sudan to renegotiate the African nation’s debts with China, Kuwait, the UAE and Japan, Sudan News Agency (SUNA) reported.

Al-Jadaan said he hopes to be able to completely exempt the debt rather than reduce it and will work with Kristalina Georgieva, president of the International Monetary Fund in helping Sudan.

The Saudi pledge came during a meeting between the Al-Jadaan and Sudan’s Prime Minister Abdalla Hamdok at his residence in the French capital, Paris.

The meeting followed a two-day meeting of the so-called Paris Club of major lenders of which China, Kuwait, the UAE and Japan are not a part.

International Monetary Fund figures show that Saudi Arabia is the third largest creditor to Sudan, with about $4.6 billion outstanding.

The Kingdom announced during the Paris Conference on Monday a $20 million grant to cover part of Sudan’s financing gap with the IMF, Al Arabiya reported.

Sudan is eligible for debt relief under the Heavily Indebted Poor Countries (HIPC) initiative.

Al-Jadaan also mentioned his discussions with the Saudi central bank, regarding the possibility of opening branches of Saudi banks in Sudan to facilitate the movement of capital between the two countries, in addition to facilitating the remittances of Sudanese expatriates.

This article has been adapted from its original source