Under a debt relief plan won by advocates in the early 2000s, Sudan could see a drastic cut in its $50 billion debt this summer, according to the IMF and the World Bank.
“Sudan’s debts would be cut by 85% under the debt relief plan,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network, which was a major force for the creation of the debt reduction process.
“Debt relief cannot come soon enough for Sudan as the country struggles with the pandemic and a 50% poverty rate.”
Thirty-seven, out of thirty-nine eligible countries, received debt relief under the Heavily Indebted Poor Countries Initiative (HIPC). In order for Sudan to receive a debt reduction it must meet IMF economic reforms and clear missed debt payments.
The United States loaned $1.1 billion to Sudan to clear debt payment arrears to the World Bank and convened creditors to secure debt relief.
“The United States is an important leader in Sudan debt relief and is playing a crucial role in expanding debt relief policies during the pandemic,” shared LeCompte, who worked with Republican and Democratic administrations for more than a decade on debt policies. “This relief for Sudan can support economic growth and stabilize a hard-won peace in a country where conflict raged for 17 years.”
After Sudan obtains debt relief, Eritrea remains the lone country that could qualify under the HIPC debt relief plan won by Jubilee USA.
Jubilee USA Network is an alliance of more than 75 US organizations and 750 faith communities working with 50 Jubilee global partners. Jubilee USA builds an economy that serves, protects and promotes the participation of the most vulnerable.
Jubilee USA wins critical global financial reforms and won more than $130 billion in debt relief to benefit the world’s poorest people