Arab fund offers $305 mln loan to cash-starved Sudan

Pulse News Agency International by AFP

November 14, 2019 10:12 PM

Sudan said Thursday it would receive a $305 million loan from an Arab fund to help tackle the country's worsening economic crisis led by soaring food prices and foreign currency shortage.

Sudan's ruling civilian-military council took power in a country facing severe economic difficulties

Sudan's economic woes had led to nationwide protests that resulted in the ouster of longtime ruler Omar al-Bashir in April.

On Thursday a delegation from the Arab Monetary Fund met Sudanese Finance Minister Ibrahim Al-Badawi.

"During the meeting, the delegation said the fund plans to support the Sudanese economy with an estimated funding of $305 million, including loans and trade facilities," the finance ministry said in a statement afterwards.

Sudan will receive $110 million this month, followed by $45 million in the first quarter of next year and a third tranche of $80 million by the end of 2020.

A separate trade facility of $70 million will also be offered as part of the overall package.

The loan is the second such facility to Sudan this year from the Abu Dhabi-based lender, which previously pumped $300 million into its economy in May.

The finance ministry said that in a separate agreement, the African Development Bank also gave Sudan a grant of $32.8 million to upgrade water and sanitation facilities in the conflict-hit states of North and South Kordofan.

Last month Badawi told AFP that Sudan needed $3 billion to cover immediate needs and stabilise its budget.

Since the fall of Bashir, Sudan has been getting by on aid from long-time allies Saudi Arabia and the United Arab Emirates.

Growing anger over the country's economic crisis triggered protests in December last year against Bashir's rule.

They swiftly turned into a nationwide movement that finally saw the veteran president ousted by the army on April 11.

Sudan is currently ruled by a joint civilian-military sovereign council which is overseeing the country's transition to a civilian rule, as demanded by protesters.

The daily affairs of the country are managed by a transitional cabinet headed by prominent economist Prime Minister Abdalla Hamdok.

Sudan's economic crisis deepened since the secession of South Sudan in 2011 which took away the bulk of oil earnings.

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Pulse News Agency International by AFP