Active Development AidData Chinese Aid

Chinese Government reschedules the Government of Sudan’s outstanding debt obligations in 2012

Funder	Unspecified Chinese Government Institution
Recipient Organization	Government of Sudan
Country	Sudan
Start Date	Feb 18, 2012
End Date	Mar 12, 2031
Duration	6,962 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`30421`

Grant Description

On February 18, 2012, the Chinese Government announced that it had agreed to reschedule the outstanding debt obligations of the Government of Sudan by extending loan repayment periods by 5-years.

It is not clear whether all Chinese Government loan maturities were extended by 5-years, or a specific subset of Chinese Government loans.

According to a Khartoum-based newspaper (al-Sahafa), which cited Sudan Finance Minister Ali Mahmoud, the Chinese Government agreed to the rescheduling because of Sudan’s 'loss of oil revenues.' At the time that this debt rescheduling agreement was finalized, Sudan had experienced a major slide in its currency after losing three quarters of its oil production due to the 2011 secession of South Sudan.

The currency slide, in turn, fueled inflation and protests.

Oil revenues provided the main source of foreign currency used by the Government of Sudan to repay foreign currency-denominated loans.

📋 Staff Comments

1. One source (https://sudantribune.com/article44214/) suggests that CNPC was the lender that provided 5-year maturity extensions. This issue warrants further investigation.

📚 Sources & References

Sudan delays China debt, exports $400 million of gold
Sudan’s external debt projected to hit record $46 billion in 2013 – IMF
Cooperation agreement creating “international acceptance” to waive Sudan’s debt – minister
China cancels Sudan’s pre-2016 debt: envoy
苏丹推迟偿还中国债务
UPDATE 1-Sudan delays China debt, exports $400 mln of gold
Sudan Wins Five-Year Delay to Repay China Debt
Al-Sahafa Says
Sudan finance minister says “huge” Chinese loan will stabilize economy as currency slides further
China: Debt Cancellation Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.