Tuesday, December 7, 2010

ARTICLE: Sudan Debt Dynamics - Status Quo, Southern Secession, Debt Division, and Oil


This paper contributes to ongoing discussions about the role of Sudan‘s $35 billion in external debt obligations – both for a unified Sudan and a possible Southern secession. First, it examines Sudan‘s existing debt dynamics and the potential eligibility for traditional debt relief and multilateral debt relief initiatives. Second, it outlines potential options for dividing Sudan‘s external debt obligations in the event of a Southern secession. Third, it estimates external indebtedness ratios under each debt division scenario and the potential relevance of traditional debt relief treatments. Lastly, the paper provides an indicative roadmap for clearing Sudan‘s loan arrears of $30 billion and potentially securing comprehensive debt relief in the future.

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