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06 Jul 2021
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Saudi Arabia welcomes World Bank, IMF debt relief for Sudan under HIPC initiative

July 6, 2021

Saudi Arabia has welcomed the decision of the International Monetary Fund (IMF) and the World Bank Group (WBG) to ease Sudan’s debt burden, Saudi Press Agency (SPA) reported on Tuesday.The debt relief for Sudan will be provided under the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative through which a range of structural reforms will be implemented to restore macroeconomic stability in the conflict-weary country.For all the latest headlines follow our Google News channel online or via the app.Last week, the IMF decided that the country reached the decision point to qualify for the HIPC initiative, Sudan’s finance minister was quoted as saying by Reuters. The decision meant that the country, which is more than $50 billion in debt, would begin to receive relief.Sudan’s economic crisis has been deemed “the largest case in absolute terms” by an IMF official told Reuters last month.Civil unrest and a lack of natural resources have contributed to the overall situation in Sudan, with food becoming scarcer and poverty increasing by the day.“This marks a profound and historical moment in Sudan’s long journey towards re-engagement and normalization of relations with the international financial institutions after nearly three decades of global financial isolation,” SPA quotes Saudi finance minister Mohammed al-Jadaan as saying.“We have come a long way since the Friends of Sudan Conference that Saudi Arabia hosted in August 2020 to mobilize support for Sudan. And, Saudi Arabia will continue to be supportive to Sudan’s efforts to revive and grow its economy.”During the Kingdom’s participation in the International Conference on Sudan in Paris in May 2021, Saudi Arabia provided Sudan with a $20 million grant to cover the financing gap of the country’s debt with the IMF and announced that it would transfer its full share of the emergency and deferred charges accounts held at the IMF to Sudan for their debt relief.Read more:Sudan crosses last hurdle towards debt relief, reaches IMF HIPC point: OfficialSaudi King Salman directs support for Sudan to deal with the IMF debt burdenIMF announces financing plan aimed at Sudan debt relief
Source: Al Arabiya
Full Article: Saudi Arabia welcomes World Bank, IMF debt relief for Sudan under HIPC initiative

06 Jul 2021
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Lebanon is days away from ‘social explosion,’ says Diab as he calls for aid 

July 6, 2021

Lebanon is a few days away from a social explosion, caretaker Prime Minister Hassan Diab warned on Tuesday, calling on the international community to save a country in deep economic crisis.The World Bank has called Lebanon’s crisis one of the worst depressions of modern history. The currency has lost more than 90 percent of its value and more than half of the population has been propelled into poverty.For the latest headlines, follow our Google News channel online or via the app.Anger over fuel shortages has spilled into fights at petrol stations and the prime minister appeared to be warning of the prospect of more unrest.“Lebanon is a few days away from the social explosion. The Lebanese are facing this dark fate alone,” Diab said in a speech at a meeting with ambassadors and representatives of diplomatic missions in Beirut.Diab has been serving in a caretaker capacity since resigning in the wake of the catastrophic Aug. 4 Beirut port explosion. Since then, fractious sectarian politicians have been unable to agree on a new government.Diab also said only a new cabinet could re-start talks with the International Monetary Fund (IMF).“This government does not have the right to resume negotiations with the IMF to implement the recovery plan set by the cabinet, for this entails obligations on the next government that it may not endorse,” he said.The European Union’s foreign policy chief told Lebanon’s leaders last month they were to blame for the political and economic crisis and some could face sanctions if they continue to obstruct steps to form a new government and implement reform.Diab noted repeated calls for assistance to be linked to reform, but said “the siege imposed” on Lebanon was not affecting the corrupt - an apparent reference to politicians.He said Lebanese were running out patience and “linking Lebanon’s assistance to the formation of a new government has become a threat to the lives of the Lebanese and to the Lebanese entity.”Read more:Project Watan’s coordinator says Lebanon is facing a sectarian militia occupationLebanon’s medicine importers warn of serious foreign drugs shortageJudge investigating Beirut port blast targets top officials in Lebanon
Source: Al Arabiya
Full Article: Lebanon is days away from ‘social explosion,’ says Diab as he calls for aid