Working Paper

Is Sudan’s Public Debt Sustainable? Preliminary Assessment

The motivation of this study is the recently launched global agenda of SDGs goals (17.4) that proposes to “ Assist developing countries in attaining long-term debt sustainability; this is to be attained through coordinated policies aimed at fostering debt financing, debt relief and debt restructuring, as appropriate, and address the external debt of highly indebted poor countries to reduce debt distress”. The current state of debt in Sudan falls in his category. To this effect, the paper briefly reviews the general approaches to address debt sustainability both from theoretical and empirical perspectives. It further reviews the economy of Sudan as a background to the study. Finally it calculated the extent to which Sudan’s debt is likely to be sustainable. It carried out the exercise under different economic growth scenarios.