Speech of the Prime Minister on Eligibility of our country to enter the Heavily Indebted Countries Initiative

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Speech of the Prime Minister on Eligibility of our country to enter the Heavily Indebted Countries Initiative

In the Name of  Allah Most Gracious Most  Merciful
 
 Speech of the Prime Minister on Eligibility  of our country to enter the Heavily Indebted Countries Initiative 
 
 Peace, mercy and blessings of Almighty Allah be upon you.
 I address you on this historic day for our country to announce that we have reached the decision point regarding the Heavily Indebted Countries Initiative (HIPC).  
Allow me in this address , to clarify  some points briefly.
 What this government inherited is a structural defect in the macro economy represented in:
 • A big budget deficit.
 • A borrowing from the banking system of no less than 200 billion Sudanese  pounds per year.
 • A basic defect  in the exchange rate and its multiplicity .
 • A big deficit in the balance  of trade.
 • A heavy inheritance  of debts of nearly 60 billion dollars.
 The government has worked on  completely removing  these distortions along with  legislative and legal reforms, which assisted  in the following:
 • Removing Sudan's name  from the list of state sponsors of terrorism.
 • Integration of Sudan into the international community.
 • Our relations with the countries of the world have become normal after we were isolated.
 • This decision was taken within six months, and this is the shortest period to reach the decision point to benefit from the Heavily Indebted Poor Countries (HIPC) debt relief initiative.
 • This first reflects the seriousness of the government, which has laid down  an integrated reform program that includes a poverty reduction strategy.
 Sudan's debts, which are expected to be written off within a year as  from today, are equivalent to 40% of the total debts that have been written off for 38 poor countries, and this represents the largest debt relief  process throughout the history of this initiative and in the shortest possible period of time.  Today, a grant  amounting to  $100 million has already been signed for the Ministry of Health to confront the Corona pandemic (Covid 19).
 The decision point allows Sudan, as a country eligible to receive financing for development projects, to engage immediately with the International Monetary Fund, the World Bank and the African Development Bank.  Sudan has settled  its due arrears  to these international financial institutions, estimated at more than three billion dollars, and will now begin the process of engaging creditors in providing debt relief.
 Sudan's debts until the end of the year 2020 were estimated at about 60 billion dollars, of which an estimated 92% were in arrears.  But this debt is unsustainable and the International Monetary Fund and the World Bank have declared Sudan eligible for debt relief  under the HIPC Initiative.
 The Heavily Indebted Poor Countries (HIPC) initiative aims at debt relief to allow Sudan to gear funds to improve the lives of the Sudanese people, rather than spending them on debt repayment, in order to reduce poverty and achieve the desired growth and development.
 Reaching the decision point is the beginning of the process.  In the coming weeks, Sudan will communicate with creditors from the Paris Club, as well as creditors from outside the Paris Club and with commercial creditors.  Upon reaching the so-called completion point, Sudan will receive a final debt relief estimated at about $50 billion.
 The transitional government has secured a way to the relief of Sudan's debts so that this burden can be alleviated  in a very short period of time, as debts were the main obstacle for Sudan to participate and interact with international financial development partners and benefit from them.
 With this decision, Sudan regained the right to vote in the International Monetary Fund (IMF), which had been suspended since August 2000.
 The direct benefit of the HIPC decision point is our obtaining new grants and loans. For example, it opens the door for Sudan to obtain about $4 billion - of which $2 billion through the Global Development Fund to be geared  to spending on electricity, water and basic services such as education, health and economic growth  .
  Now the government is very focused on getting to the completion point of the final debt relief and that requires extra effort from all of us.
 O great Sudanese people,,,*
 Whenever I try to talk about the patience of the Sudanese people, I find words less able to express what the Sudanese have endured, and what the people have suffered with the loss of dreams and aspirations that go with the winds of conflicts and political fluctuations.
 This battle of crossing, in which we won many rounds, and what remains is the decisiveness in the last round, which began today with achieving victory in the round of the decision point that we heralded upon our arrival from the Paris conference.
 We can say today that we are moving in the right direction, especially after the Berlin and Paris conferences, and a group of the daughters and sons of the Sudanese people made great efforts to reach this stage, and we must thank them very much for that.
 The progress that took place was at the level of outside and international relations, and what I have said repeatedly and repeat today is that the outside and the revitalization of relations with the international community for development are nothing but measures to unblock channels and open traffic gates, but I always emphasize that our internal capabilities and our own resources are the most decisive factor.
 Here the Sudanese people are fulfilling their full duties in protecting their revolution. As for safeguarding the gains and harnessing  them for the benefit of the country, it is a collective responsibility that we are at the forefront ofit.  What we need today is to think in parallel and simultaneous manner on how to protect and develop upcoming and expected development projects, and to conduct evaluation and assessment processes in all stages of our work.
 An important message that I want to convey through this opportunity, we need to involve the Sudanese people in managing and monitoring all development projects by carrying out many necessary reforms on different fronts, the first of which is the front of building local governance  structures after passing the laws that allow this, as the people’s rule for themselves will not be achieved without  Carrying out the procedures for transferring full ownership to him, as this will achieve his satisfaction and raise the degree of his commitment to protection.
Iam Addressing you the great Sudanese people
 I stand before you today, as our country starts a new chapter  with the world, to recommit to working with you collectively to build a good and democratic homeland, within the framework of the initiative we launched on (National Crisis and Transition Issues - The Way Forward).
 
 Peace  and the mercy of Allah d be upon you
 
 Cabinet Media
 June 29, 2021AD