The Paris Club of official creditors has agreed to cancel $14 billion owed by Sudan and restructure the rest of the more than $23bn it owes, Paris Club chairman Emmanuel Moulin said on Friday.

Reuters

Jul 16, 2021

The Paris Club of official creditors has agreed to cancel $14 billion owed by Sudan and restructure the rest of the more than $23bn it owes, Paris Club chairman Emmanuel Moulin said on Friday.

Speaking after the deal was reached on Thursday, Mr Moulin urged Sudan’s other private and public creditors to grant the country debt relief on the same terms.

Sudan became eligible for relief after the International Monetary Fund accepted it last month into the Highly Indebted Poor Countries (HIPC) initiative, based on a commitment to macroeconomic reforms.

The Paris Club agreement cancels $14.1bn outright and reschedules $9.4bn with grace periods long enough that Sudan does not have to make payments before 2024, Mr Moulin said.

“This significant effort demonstrates the international community’s support to Sudan’s democratic transition and will help Sudan to re-engage with the international financial community, pursue its reform policies and fight poverty,” Mr Moulin said.