Kuwait has agreed with Sudan on debt rescheduling, as part of the international HIPC initiative, related to the debt moratorium agreement.<\/p>\n
In turn, the Deputy Director of the operation department for Arab countries at KFAED Abdullah Al-Musaibeh said that the fund’s efforts to ease Sudan’s debt burden comes after its qualification for the decision point in accordance with the HIPC International Initiative.<\/p>\n
Al-Musaibeh explained that the Kuwait Fund does not cancel or write off the principal of its contracted loans or their accrued interests.<\/p>\n
Al-Musaibeh\u2019s speech came during the conclusion of a delegation from the Kuwait Fund for Arab Economic Development a visit to Khartoum, after discussing issues regarding \u201cdeveloping cooperation\u201d between the Fund and Sudan, matching debt arrears balances, and resuming the implementation of projects funded by the Fund.<\/p>\n
For its part, Sudan welcomed Kuwaiti investments, and Sudanese Finance Minister Jibril Ibrahim said that this was “in a way that would benefit both countries.”<\/p>\n
He pointed out that “Sudan is looking forward to settling its debts with Kuwait, as it is the largest creditor outside the Paris Club.”<\/p>\n
He pointed out to postpone the signing of an agreement with the Kuwait Fund for Arab Economic Development, regarding debt, and to suffice with the minutes of a meeting for further discussions, which will be completed in Kuwait during the coming period.<\/p>\n
Sudan is seeking to reduce its foreign debt, which exceeds $50 billion, in an attempt to get out of an economic crisis left by years of international isolation spent under the rule of ousted President Omar al-Bashir.<\/p>\n
Khartoum, with the help of the Paris Club, succeeded in writing off about 14.1 billion of its debts, during a meeting that took place last July in the French capital.<\/p>\n
After the meeting, Sudan expressed its hope that Saudi Arabia, the UAE and Kuwait would forgive it 60% of their debts amounting to $30 billion, schedule the remaining for 16 years, and give it a six-year grace period.<\/p>\n
Kuwait is at the forefront of the countries from which Sudan has borrowed, with a value of $9.8 billion, followed by Saudi Arabia at the level of the Gulf with $3.4 billion.<\/p>\n
Last May, Kuwait, Sudan’s largest creditor, said it would support discussions of a “settlement” of the debt, while Saudi Arabia said it would also push for a broad debt agreement.<\/p>\n