Exclusive: Sudan cut off from $650 million of international funding after coup

Exclusive: Sudan cut off from $650 million of international funding after coup
© Reuters/Mohamed Nureldin Abdallah FILE PHOTO: Protest against prospect of military rule in Khartoum

By Aidan Lewis, Khalid Abdelaziz and Nafisa Eltahir

KHARTOUM (Reuters) – Sudan was unable to access $650 million in international funding in November when assistance was paused after a coup, the finance minister of the dissolved government said – a freeze that puts in doubt basic import payments and the fate of economic reforms.

Exclusive: Sudan cut off from $650 million of international funding after coup
© Reuters/Mohamed Nureldin Abdallah FILE PHOTO: Protest against prospect of military rule in Khartoum

The financing included $500 million in budget support from the World Bank and $150 million in special drawing rights from the International Monetary Fund, said Jibril Ibrahim, who was appointed to a civilian transitional government in February.

Foreign funding was seen as crucial in helping Sudan emerge from decades of isolation and supporting a transition towards democracy that began with the 2019 overthrow of Omar al-Bashir.

The Oct. 25 coup upended that transition. The United States has put on hold $700 million in economic assistance since the coup and the World Bank, which had promised $2 billion in grants, has paused disbursements.

After mass protests, the military on Nov. 21 announced a deal to reinstate Prime Minister Abdalla Hamdok. He is tasked with forming a government of technocrats but faces political opposition to the deal.

“Sudan had tremendous international support. Now donors will be much more cautious,” said one former official from the dissolved government.

The onus will now be on the military and the government to show they are not returning to the very Bashir-era model that was being restructured and reformed, the former official said.

The U.S. Treasury declined to comment. The IMF, which approved a $2.5 billion, 39-month loan programme in June that is subject to periodic review, said it continued to “closely monitor developments”.

Before the coup the inflation rate, one of the highest in the world, had begun to fall, and the exchange rate had stabilized following a sharp devaluation in February.

Western diplomats and bankers say those reforms are now at risk and it is unclear how Sudan can fund imports without printing banknotes, a policy that fuelled a long-running economic crisis but stopped during the transition.

Around the time of the coup, Sudan had enough reserves to cover just two months of strategic imports, a second former official said.

GOLD REVENUES

Ibrahim, a former rebel leader who secured his ministerial role through a peace deal and expects to retain it, said he hoped international support would return gradually over the next three to six months and that meanwhile bills could be paid and reforms would continue.

“Basically we depend on tax, customs and gold revenues and on different (state) companies working in various fields,” Ibrahim said in an interview at the Finance Ministry in Khartoum. For imported basic goods, such as flour, fuel and medicine, “we cannot cover it completely, but the majority of the strategic commodities we can cover with our exports,” he said.

The government had begun to reduce its trade deficit through tax and customs reforms, but those revenues were interrupted by a blockade by a tribal group at Port Sudan before the coup. A further blockade has been threatened.

Ibrahim said the main impact of the freeze in international support would be on development projects covering areas including water supply, electricity, agriculture, health and transport. An internationally funded basic income programme to lessen the impact of subsidy reform has also been frozen.

Sudan’s 2022 budget was being planned with no allowance for international assistance, Ibrahim said, but with a target of sticking to a 1.5% deficit limit defined under an IMF financing programme. Projected growth for 2022 could fall from 3% to 1.5-2%, he said.

Ibrahim said Sudan would seek investment rather than grants from wealthy Gulf Arab states that now face their own economic challenges.

“Up till now there have not been any big promises of support from any country, Arab or non-Arab, but contacts with all friendly states continue,” he said.

(Additional reporting by Andrea Shalal, Writing by Aidan Lewis, Editing by William Maclean)

News Related

OTHER NEWS

Von Mexico in die USA: Texaner versucht Migranten in Sarg zu schmuggeln

Ein mutmasslicher Schleuser ist im US-Bundesstaat Texas bei dem Versuch erwischt worden, zwei Migranten aus Mexiko in einem mit einer US-Flagge drapierten Sarg ins Land zu schmuggeln. © Bereitgestellt von ... Read more »

Neuer Job für Ex-SVP-Präsident: Albert Rösti soll Chef von Auto-Schweiz werden

Führungswechsel beim Schweizer Verband der Auto-Importeure: Mitte Mai soll der ehemalige SVP-Parteichef Albert Rösti zum neuen Präsidenten von Auto-Schweiz gewählt werden. © keystone-sda.ch Albert Rösti soll Chef von Auto-Schweiz werden ... Read more »

John McEnroe slams Emma Raducanu AGAIN over coach axe having criticised US Open winner for Wimbledon withdrawal

JOHN McENROE has slammed Emma Raducanu yet again. But he did caveat his latest criticism by insisting he is 'pulling for her' to do well in 2022. Emma Raducanu's decision ... Read more »

Two charged in coat thefts reject sentence offer

Jan. 27—DANVERS — Two of the five people charged in what turned into a violent robbery at a Danvers clothing store back in 2019 are turning down a judge's proposed ... Read more »

New Italy president still elusive after 4th round of voting

© Provided by Associated Press President of the Italian Senate Maria Elisabetta Alberti Casellati, left, and President of the Italian Chamber of Deputies Roberto Fico count ballots during a voting ... Read more »

Ukraine crisis: From Belarus to Japan, where do countries stand?

Ukraine has been on edge for nearly two months, with Russian troops massing on its border. Russia insists the troops are only there to defend the country from NATO’s expanded ... Read more »

He won a trip to space. Then he gave it away to a friend

CAPE CANAVERAL, Fla. (AP) — He told his family and a few friends. He dropped hints to a couple of colleagues. So hardly anyone knew that the airline pilot could ... Read more »

Kerajaan cadang haramkan penjualan rokok kepada mereka yang lahir selepas 2005, kata KJ

© Provided by Free Malaysia Today Khairy Jamaluddin berkata, langkah sebegitu akan memberi impak besar dalam mencegah dan mengawal penyakit tidak berjangkit di negara ini. PETALING JAYA: Kerajaan bercadang untuk ... Read more »

How to change Pokémon nicknames in Pokémon Legends: Arceus

© Provided by Dot Esports What better way to bond with your Pokémon than to change their names to something that makes them unique to you? In Pokémon Legends: Arceus, ... Read more »

How to evolve Scyther into Kleavor in Pokemon Legends: Arceus

As soon as fans saw Kleavor, they started wondering how to evolve a Scyther in new game Pokemon Legends: Arceus. Now we know the answer. This curiosity comes from the ... Read more »

Misfits Gaming vs. MAD Lions: 2022 LEC Spring betting analysis

An important match will unfold during week 3 of the 2022 LEC Spring Split, as MAD Lions and Misfits Gaming will fight for a spot in the top three.  The ... Read more »

How NYC renters are turning their apartments into winter ‘sane asylums'

Interior designer Rebecca Gitana Torres wants you to maximize your space and your happiness. Rebecca Gitana Torres A new wave of outside-the-box interior design is reshaping the homes of NYC’s ... Read more »

PM Modi calls for three pronged approach for regional connectivity and connectivity between India and Central Asian countries

© Provided by The Statesman PM Modi calls for three pronged approach for regional connectivity and connectivity between India and Central Asian countries In what appears to be India’s own ... Read more »

Elon Musk says Tesla Cybertruck, other new models delayed until at least 2023

Tesla is pushing back production of its Cybertruck and two other models until at least 2023, Elon Musk said. AFP via Getty Images The launch of Tesla’s Cybertruck and two ... Read more »

Strictly's Nadiya strips to her bikini as she goes sea swimming with co-stars on tour

STRICTLY star Nadiya Bychkova looked sensational as she stripped to her bikini and joined her co-stars for a swim in the sea. The professional dancer, who has reportedly split from ... Read more »

Tesla Reports Bitcoin Holdings Unchanged in Q4

The value of Tesla's (TSLA) bitcoin holdings at the end of the fourth quarter remained unchanged from the end of the previous quarter at $1.26 billion, the electric car maker ... Read more »

How to evolve Pokémon in Pokémon Legends: Arceus

© Provided by GamePur Evolving your Pokémon into their next evolution is a critical part of these games, and you’ll be able to evolve many of them that you encounter ... Read more »

How to change a Pokémon's name in Pokémon Legends: Arceus

© Provided by GamePur © Provided by GamePur Image via Nintendo With hundreds of Pokémon in each title, there is always so much to do in the series, and Pokémon ... Read more »

How to save your game in Pokémon Legends: Arceus

© Provided by Dot Esports Pokémon Legends: Arceus takes the traditional formula used by Game Freak over the last two decades and revamps it into something almost entirely new. Every ... Read more »

Gorka Marquez and daughter Mia's matching shoes are beyond cute

Strictly Come Dancing star Gorka Marquez has shared the sweetest post with his Instagram followers, showing off his and daughter Mia’s matching shoes. MORE: Celebrity babies due in 2022: Vogue Williams, Rosie ... Read more »

Alisha Lehmann zeigt sich frisch verliebt

Alle Vermutungen bestätigen sich – für die Schweizer Nati-Spielerin Alisha Lehmann wird es in Sachen Liebe wieder ernst. In einem Instagram-Post gesteht sie ihre Liebe zum brasilianischen Fussballer Douglas Luiz. ... Read more »

Ex-Internationaler Marcel Mauron gestorben

© KEYSTONE/ALESSANDRO DELLA VALLE Der ehemalige NLA-Torschützenkönig und frühere Schweizer Internationale Marcel Mauron ist im Alter von 92 Jahren gestorben, wie sein früherer Klub FC La Chaux-de-Fonds mitteilte. Als Flügelstürmer ... Read more »

Kremlin says ‘little ground for optimism' in US response to Moscow demands

The United States’ rejection of Russia’s key security demand that Ukraine be barred from ever joining NATO leaves “little ground for optimism,” Kremlin spokesman Dimitry Peskov said Thursday before signaling ... Read more »

Boris Johnson yet to receive Sue Gray report and says it's ‘total rhubarb' he authorised Kabul animal airlift – live

LIVE – Updated at 14:38 Downing Street says it’s ‘hypothetically’ possible report will be published today or tomorrow; PM denies making call to airlift Pen Farthing’s animals. Johnson says it’s ... Read more »

Ralf Rangnick could leave Manchester United Football Club next season!

© GiveMeSport p1fqdus1qhcd3oug1mag1cu7qfsb.jpg Transfer expert Dean Jones told The Football Terrace host Terry Flewers that there is a chance Ralf Rangnick could leave Manchester United this summer. Check out the ... Read more »

Exeter to abandon Native American theme as rebrand honours Celtic Iron Age tribe

Exeter are to rebrand themselves in line with the ‘Celtic Iron Age Dumnonii Tribe’ after deciding to abandon the controversial Native American theme that has provoked fierce criticism. The new ... Read more »

Newcastle eyeing "remarkable" 29-time trophy winner, he'd kickstart PIF's revolution - opinion

© Provided by Football FanCast Thomas Muller battling for the ball Newcastle United have been linked with a surprise swoop for Bayern Munich star Thomas Muller. What’s the story? According ... Read more »

How Bukayo Saka bounced back from Euro 2020 penalty heartache to become Arsenal talisman

When Bukayo Saka returned to Arsenal after his Euro 2020 penalty pain last summer, Mikel Arteta urged him to use the “scar” of that miss as motivation. In the six ... Read more »

Steve Waugh's Australian Open moment gets Twitter chirping, here's how fans react - WATCH

Former Australia captain Steve Waugh is hailed as one of cricket’s biggest icons, boasting of an impeccable record as a leader. Apart from captaining one of the best Test unit, ... Read more »

History-seeking Barty ready to embrace the moment

© Provided by The Times of India Knowing Ash Barty, it shouldn’t come as a surprise how she wishes she could play on the historic grass courts of the Kooyong ... Read more »

Brexit checks mean lorry queues at Dover ‘only going to get longer', says union

© PA Lorries queue for the Port of Dover in Kent on 18 January – PA Brexit controls are behind the huge lorry queues leading up to Dover and delays ... Read more »

Block drops after report Apple is preparing to launch payments service on iPhones for small businesses

© James Leynse/Corbis via Getty Images A credit card is being swiped on a Square mobile payment terminal. James Leynse/Corbis via Getty Images Block shares fell more than 3% Thursday ... Read more »

NHL icon Steve Yzerman gives legendary performance in hilarious interview

One of the greatest players of his generation and now Detroit Red Wings general manager, Steve Yzerman has some secret techniques to unwind after a night’s work. Steve Yzerman delivered ... Read more »

Villa agree deal to sign Scotland captain Corsie

© PA Scotland captain Rachel Corsie wants to move back to the UK Aston Villa have agreed a deal to sign Scotland captain Rachel Corsie. The Kansas City Current defender ... Read more »

Swedish media: At least two ISIS-related women have been deported from Syria and are now on their way to Sweden

At least two women have been deported by the Kurdish authorities in northeastern Syria and are on their way to Sweden, according to several Swedish media. According to SVT, a ... Read more »

£18bn Crossrail start in June ‘is achievable', watchdog says

© PA Archive The new Elizabeth Line (Victoria Jones/PA) – PA Archive Plans to open Crossrail by the end of June are “achievable”, according to the independent watchdog overseeing progress ... Read more »

Hotelier hits out at lack of Stormont investment in all-Ireland tourism body

A leading Northern Ireland hotelier has criticised Stormont for what he claimed is an “embarrassing” lack of funding of cross-border body Tourism Ireland. Howard Hastings, managing director of the Hastings ... Read more »

Lost the ball 33 times, 17 duels lost: Rangers' three worst players vs Livingston

© Provided by Transfer Tavern Cedric Itten vs Antwerp Glasgow Rangers simply got the job done at home to Livingston on Wednesday night with a 1-0 win at Ibrox thanks ... Read more »

NATO: What is it and when does it act?

NATO — the North Atlantic Treaty Organization, to give it its full name — is a non-aggressive European and North American defense alliance set up to promote peace and stability ... Read more »

AP source: Broncos finalizing deal with Packers OC Hackett

ENGLEWOOD, Colo. (AP) — The Denver Broncos are finalizing a deal to hire Green Bay Packers offensive coordinator Nathaniel Hackett as their head coach, a person with knowledge of the ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic