Saudi Arabia to help Sudan cut debts from UAE, Kuwait, China and Japan

Saudi Arabia to help Sudan cut debts from UAE, Kuwait, China and Japan
Saudi Arabia said on Monday it would grant Sudan $20 million to help Sudan meet its obligations to the IMF. (Reuters)
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Updated 20 May 2021

Saudi Arabia to help Sudan cut debts from UAE, Kuwait, China and Japan

Saudi Arabia to help Sudan cut debts from UAE, Kuwait, China and Japan
  • Saudi Arabia hopes to get debt with the countries reduced to zero

RIYADH: 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.