ANALYSIS OF SUDAN`S FOREIGN DEBT SUSTAINABILITY INDICATORS

Author's Name: Saad A. Alkaram
Subject Area: Social Science and Humanities
Subject Economics
Section Research Paper

Keyword:

Sudan, Macroeconomics, Debts, Economic Performance


Abstract

The paper analyzes Sudan foreign debt and development in light of the economic variables on domestic and global levels. The problem of the paper is represented in that while the foreign loans constituted a source of development in Sudan, but they nonetheless created a real crisis that threatened the economic and political stability; therefore it was necessary to answer the questions: It is important to know, to what extent did the foreign debts contribute to the financing of development in Sudan? What are the most important reasons that led to the worsening of the crisis and non-sustainability of Sudan foreign debts?) The importance of the paper emanates from acknowledging that while the foreign debt has an important impact on the development in Sudan, but it may turn into a crisis if not utilized optimally, so the paper is trying to study the foreign debt crisis in Sudan to understand it and make proposals to address it. The paper assumes that there is a continuous increase in Sudan foreign indebtedness, and that the inefficient exploitation of the foreign loans led to the non-sustainability of the foreign debt. However the political factor further exacerbated the crisis of Sudan foreign indebtedness. The researcher used the secondary sources of information and data to benefit as far as possible from the economic literature, books, references, researches, brochures, publications and reports relevant to the research subject. The researcher used the historical and descriptive analytical approaches in an attempt to reach logical results to contribute to the development of proposed solutions to address the foreign debt crisis in Sudan. The researcher found that the foreign debt of Sudan continues to increase with high sustainability indicators meaning that the country is going through a sharp foreign debt crisis rendering it difficult for it to meet its obligations and obtain new loans on concessional terms.

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