This archive report was first published on 16 October 2019.
World Bank Denies Sudan More Loans Over KSh 1.6 Trillion Debt Arrears ¶
On October 12, 2019, the World Bank's director for Ethiopia, Eritrea, Sudan, and South Sudan, Kari Turk, stated that Sudan needs to pay arrears to financial institutions and sovereign creditors of between KSh 1.5 trillion to KSh 1.6 trillion.
The country's sovereign debt is estimated at between $50 billion and $60 billion, with Prime Minister Abdalla Hamdok calling for debt relief to allow his country access to commercial loans.
The World Bank's decision will likely send shock waves in Kenya, as the international lender has also asked the country to cut down on its appetite for loans, warning that Kenya is fast spiraling towards being a debt-ridden country.
Kenya's National Assembly voted to increase the national debt limit to KSh 9 trillion from KSh 7.5 trillion proposed by a joint committee on finance and budget on October 9, 2019, despite opposition from the civil society and donors on the sustainability of the increasing debt against a struggling economy.
The international lender wants Kenya to focus on reducing the debt to GDP ratio from the current 62% to 55% in the medium-term.
