Sudan’s Odious Debt

Executive Summary

The current global economic crisis has significantly affected Sudan’s fragile economy. The country’s large existing public debt burden—which ballooned under the National Islamic Front/National Congress Party reign from 1989 until today—frustrates its attempt to access needed foreign capital during the financial downturn. Like other struggling countries, Sudan has sought a debt-relief package from its creditors to overcome its current challenges.

This debt, however, has been incurred by an unrepentant, unreformed regime, and has effectively subsidized war and genocide waged by the Sudanese government against its own people. The Sudanese people have been burdened with more than $23 billion in “odious debt” from the Omar Al-Bashir regime’s campaign of negligence and destruction over the last 20 years. During the past six years, moreover, robust economic gains have underpinned the government’s hubris and intransigence in confronting the international community on Darfur. Now in dire straits, the Sudanese government has redoubled its push to secure a debt-relief package and economic foreign assistance agreement as part of its bilateral talks with the United States, with American allies, and with multilateral creditor institutions in which the United States plays a key role.

With Sudan at a dangerous crossroads, President Obama must present those in power in Khartoum with a choice between earned incentives or serious consequences. His administration should lead an international coalition of Sudan’s creditors to condition any consideration of debt-relief or debt-servicing adjustments on concrete and lasting progress toward peace in Darfur, the full implementation of the Comprehensive Peace Agreement (CPA), and significant structural political and judicial reforms that fundamentally change the repressive systems in Sudan. For a more prosperous future in Sudan, the international community must rid the Sudanese people of this burdensome and “odious” debt created by the regime in Khartoum – but Sudan’s leaders should know they first must finally commit to extinguishing the flames and embers of decades of war in Sudan.

Quick Facts

• Sudan’s debt has risen from $13 billion in 1989 to an estimate $36 billion today – owed mostly to Western, multi-lateral, Chinese, Arab and Indian creditors.
• The Sudanese people have been burdened with over $23 billion in “odious debt” during the Bashir regime’s campaign of negligence and destruction over the last twenty years.
• Sudan collected over $2 billion in new loans from international between 2001 and 2006 when it was still waging war in south Sudan and orchestrating its campaign of death and destruction in Darfur. In 2007 and 2008, Sudan contracted another $1.444 billion in new loans mostly from Arab multilateral and non-Paris club creditors, as well as from China and India.
• Sudan today accounts for a staggering 75% of total arrears (unpaid back payments) owed to the International Monetary Fund.

Learn more about Sudan’s debt

• Download our one pager
• Watch our panel discussion
• Check out our actions at the 2009 G20 Summit in Pittsburgh, PA.