In a high-stakes diplomatic effort held on the sidelines of the International Monetary Fund (IMF) and World Bank Spring Meetings, a Sudanese delegation has launched a robust movement to restore the country’s international financial standing and reduce its massive $66.8 billion external debt.
The delegation, led by the first female Governor of the Central Bank of Sudan, Amna Mirghani Hassan al-Toum, and Minister of State for Finance Mohamed Nour Abdel Daim, held discussions with the United Kingdom’s Executive Director at the World Bank Group. During the talks, they emphasized that securing debt relief is no longer merely an economic goal but a humanitarian necessity for the war-torn nation.
The primary focus of the discussion was the total debt reaching $66.8 billion. However, Central Bank officials explained that the actual weight of the debt—the principal—is approximately $33 billion. The remaining half of the total consists of interest and late payment penalties accumulated over several decades. For Sudan, this mountain of debt has functioned as an economic blockade.
Although the country had passed through the debt reduction program designed for Heavily Indebted Poor Countries (HIPC) years ago, the process was interrupted following the military coup in October 2021. Consequently, Western creditors and international institutions immediately suspended nearly $50 billion in debt cancellation.
The urgency of the Washington meetings was further highlighted by a new analysis from the United Nations Development Programme (UNDP). According to the report, the current conflict has effectively pushed Sudan’s economy back by more than 30 years. In 2023 alone, the country lost $6.4 billion of its Gross Domestic Product (GDP), a shock that drove 7 million people into extreme poverty within a single year.
The Ministry of Finance stated in a briefing that “restoring a full partnership with the World Bank is our primary priority,” adding that “otherwise, the doors to the financial support needed for construction and production projects will remain closed.”
Although relations have been chilled since 2021, improvements are now being observed. While $1.8 billion in direct aid remains frozen, the World Bank sent a delegation late last year to monitor health, water, and education projects carried out through the United Nations.
While this “backdoor” support is vital for poverty reduction, the Sudanese delegation is now pushing for a return to a formal international partnership. The UK Executive Director expressed support for Sudan’s efforts to renew its relations with international financial institutions, though he stressed that Sudan must consistently provide the necessary data for the debt relief process to continue.
