World Bank suspends aid to Sudan after coup

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The World Bank announced the suspension of all aid to Sudan and suspended its decisions on any new operation in the country after the army seized power in a coup in Khartoum on Monday.

In a statement released on Wednesday, World Bank President David Malpass said that as of Monday, the World Bank Group had suspended the disbursement of all its operations in Sudan and stopped deciding on any new operations while. by closely monitoring and assessing the situation.

“I am deeply concerned about the recent events in Sudan, and I fear the significant impact this could have on the recovery and the social and economic development of the country,” added Malpass.

This is a new step by the World Bank, a further step that reduces the much needed financial support Sudan after the coup.

Malpass, paid a two-day visit to Sudan in September, where he recognized “the remarkable resilience of the Sudanese people”.

Sudan reached the Heavily Indebted Poor Countries (HIPC) decision point in June 2021, which will allow Sudan to erase almost all of its external debt estimated at $ 50 billion. The World Bank has also pledged to support Sudan with $ 2 billion in poverty reduction grants.

On Tuesday, the European Union said: “This attempt to undermine Sudan’s transition to democracy is unacceptable. If the situation does not reverse immediately, there will be serious consequences for the EU’s engagement, including its financial support. “

In March, the EU agreed with the World Bank on the second phase of the EU’s contribution to the Samarat Family Support Program, one of the important elements of the transitional government’s reform program, which aims to mitigate the economic impacts of these reforms on Sudan and the most vulnerable families, by extending an additional 70 million euros. The first phase, amounting to 93 million euros, was announced on September 27.

The contributions of the other Member States of the European Union bring the total contribution of the European Group to the program to 310 million euros.

Also on Tuesday, the United States suspended all aid to Sudan. US State Department spokesman Ned Price said, “The United States is suspending aid from the $ 700 million in emergency aid funds from the Sudan Economic Support Fund. These funds were intended to support the country’s democratic transition as we assess the next stage of programming in Sudan.

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