Following the military takeover that overthrew the prime minister, the World Bank, an international financial institution, suspended its aid to Sudan.
The World Bank, an international financial institution, announced Wednesday that it has suspended aid to Sudan following the military takeover which ousted the prime minister.
David Malpass, President of the World Bank, says that he is deeply concerned about recent developments in Sudan and fears the impact they may have on the country’s economic and social recovery.
“I am greatly concerned by recent events in Sudan, and I fear the dramatic impact this can have on the country’s social and economic recovery and development,” World Bank President David Malpass said in a statement.
As an international financial institution, the World Bank provides loans and grants to governments of low- and middle-income countries to finance capital projects.
This is the latest blow to the impoverished African nation that just won back good standing with Washington-based lenders after years in the wilderness.
As reported by Reuters, the military seized Prime Minister Abdalla Hamdok on Monday and briefly detained him in a coup that came just over two years after Omar al-Bashir was ousted from power.
Malpass said the World Bank “paused disbursements in all of its operations in Sudan on Monday, and it has stopped processing new operations” as it closely monitors and assesses the situation.
“We hope that peace and the integrity of the transition process will be restored, so that Sudan can restart its path of economic development and can take its rightful place in the international financial community,” Malpass said.
“We hope for a peaceful resolution of the transition process, so that Sudan can resume its path of economic development and reassert its place in the international financial community,” said Malpass.
Since December 2020, the US removed Sudan from its state sponsor of terrorism blacklist, ending decades of stringent sanctions against the country. This made it much easier for it to access much-needed foreign aid and investment.
In June, the World Bank and IMF granted Sudan debt relief under the Heavily Indebted Poor Countries Initiative, reducing its debt by half to about $28 billion; the institutions have also offered additional aid if economic reforms continue.