Sudan's Unsustainable Debt: The Way Out!

Khalid Hassan Elbeely

Abstract


The aim of this paper is to identify the main factors behind Sudan's huge external debt, as well as to identify its impact on the country's major economic indicators (especially Foreign Direct Investment (FDI), Per capita income, and poverty). Moreover, the paper will examine the strategies adopted by the government in order to reduce its unsustainable debt including benefiting from the available international initiatives such as Heavily Indebted Poor Countries (HIPCs); besides proposing a way out for the relief of the country unsustainable external debt. The methodology adopted in this paper is descriptive and analytical in nature depending mainly on secondary sources of data. The study indicated that Sudan’s debt is unsustainable and the country is highly indebted. Subsequently, statistics by International Monetary Fund (IMF) showed that the present value of Sudan’s total external debt, as of December 2012, stood at $ 79 billion, which was equivalent to 150% of GDP, 1,697% of exports and 1,646% of revenues. These ratios are far beyond the threshold of debt sustainability for Less Developing Countries. Although, the country is qualified technically to benefit from the HIPCs initiatives, but the Sudan has been banned from entering into the initiative, partly because the country needs to settle its arrears to the major creditors, i.e., IMF, World Bank (WB), and African Development Bank (AFDB), Paris and Non-Paris Club Creditors, and partly due to political demands imposed by the international community (in general and US in particular) to solve the Darfur problem.


Keywords


Debt indicators, external debt, Sudan, unsustainable debt.

Full Text:

PDF

References


Ahmed, M. (2008). External debts, growth and peace in the Sudan. Some serious challenges facing the country in the post-conflict era. CMI Publications.

Baba, G. (2012). “Sudan foreign debt problem (a vision for solution)”. MSc Thesis. Sudan University of Science and Technology.

Carvounis, C. (1984). The debt dilemma of developing nations: issues and causes. London: Aldwych.

Central Bank of Sudan (CBOS) (2013). Annual Report.

IMF (2012). Staff Report for the 2012 Article IV Consultation-Debt Sustainability Analysis for Sudan.

IMF (1993). External Debt Statistics: Guide for Compilers.

Institute for Strategic Studies. (1998). Annual Report.

Ministry of Finance and National Economy. (2013). Sudan External Debt Relief and Arrears Clearance Strategy (SEDRACS).

Pfeifer, K. (1999). “Parameters of economic reform in North Africa”, Review of African Political Economy. Vol. 82.PP 441-454.

Rahman, A. A. (1995). “The domestic origins of Sudan’s external debt crisis”, International Discourse. Vol. 3, No. 2.PP 153-179.

The Joint Outreach Tripartite Committee, CBOS. (2015). “The Role of the Joint Outreach Tripartite Committee in Removing Impediments to Sudan’s Access to External Assistance”. A Paper presented to the Fourth Annual Conference of Faculty of Economic and Social Studies, University of Khartoum. Khartoum, Sudan 16-17 June 2015.

Woodward, D. (1992). Debt, adjustment and poverty in developing countries. London: Printer Publishers in association with Save the Children.




DOI: http://dx.doi.org/10.18533/ijbsr.v5i8.820

Refbacks

  • There are currently no refbacks.




Copyright (c) 2015 International Journal of Business and Social Research

 ...........................................................................................................................

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

............................................................................................................................

If you find difficulties in submitting manuscript please forward your doc file to support@thejournalofbusiness.org. Our support team will assist you in submission process and other technical matters.

In order to get notifications on inbox please add  this domain thejournalofbusiness.org in your email safe list.

International journal of business and social research (Print)
ISSN 2164-2540

International journal of business and social research (Online)
ISSN 2164-2559

[International Journal of Business and Social Research (IJBSR) previously published by MIR Center for Socio-Economic Research, MD, USA. From February 2018 this journal is published by the LAR Center Press, OR, USA]