Sudan needs up to $5 billion in budget support to prevent collapse

Sudan has had some support for fuel and wheat imports but about 65 percent of its 44 million people live in poverty. (AFP)
Updated 08 November 2019
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Sudan needs up to $5 billion in budget support to prevent collapse

  • The country, in crisis since losing most of its oil wealth with South Sudan’s secession in 2011, has only enough foreign currency reserves to fund imports for a few weeks
  • Part of a roadmap agreed with the IMF and World Bank was that Sudan did not have to pay back $3 billion in arrears from international institutions

KHARTOUM: Sudan needs up to $5 billion in budget support to avert economic collapse and launch reforms after the ouster of veteran ruler Omar Al-Bashir, its finance minister told Reuters.
The country, in crisis since losing most of its oil wealth with South Sudan’s secession in 2011, has only enough foreign currency reserves to fund imports for a few weeks, said Ibrahim Elbadawi, part of a transitional government formed in August.
Sudan has had some support for fuel and wheat imports but about 65 percent of its 44 million people live in poverty and it needs up to $2 billion in development funding along with a hoped-for $2 billion from Arab development funds, he said.
Outlining reform plans in detail for the first time, Elbadawi said public salaries would need to be increased and a social support network established to prepare for the painful removal of fuel and food subsidies.
Months of demonstrations over price hikes for fuel and bread and cash shortages triggered the uprising against Bashir, who was toppled in April by the military. Protests have continued since, with people killed in clashes with security forces.
“We have started the process (of reforms),” Elbadawi said in an interview on Thursday. “The people of Sudan deserve to be seen in a radically different prism than the international community used to see Sudan, as a country ruled by a pariah state.”
“Now we have a revolution,” he said. Asked how much budget support was needed for 2020 he said: “Some estimates say between three to four billion (US dollars), maybe even five billion.”
The civilian government Elbadawi is part of has taken over for three years under a power-sharing deal with the military. It has drawn slightly more than half of $3 billion in support for imports of wheat and fuel offered by Saudi Arabia and United Arab Emirates in April, he said.
A “friends of Sudan” donor meeting is planned for December and the government had agreed with the United States it could start engaging with international institutions while still on a list of countries deemed sponsors of terrorism, Elbadawi said.
The designation, which dates from allegations in 1993 that Bashir’s Islamist government supported terrorism, makes it technically ineligible for debt relief and financing from the IMF and World Bank. Congress needs to approve a removal.

CURRENCY
The first experts from international institutions had arrived in Khartoum to help with reforms and a delegation of the International Monetary Fund (IMF) would come this month for Chapter IV discussions, Elbadawi said. There was no immediate comment from the IMF, World Bank or US State Department.
Part of a roadmap agreed with the IMF and World Bank was that Sudan did not have to pay back $3 billion in arrears from international institutions.
“We don’t need to pay anything. What we need to ... deliver really is policy,” he said. Sudan is one of the most indebted countries, owing $60 billion, which needs to be settled separately.
Sudan would start to increase its tax base and overhaul the civil sector, Elbadawi said. Salaries — eroded by double digit inflation rates — could be raised as much as 100 percent by April.
In the second half of next year a social support network would be set up to allow the lifting of subsidies by June or later. Some donor funding would be used to collect data to allow cash transfers for the needy.
Sudan also wanted to produce bread based on sorghum, a local cereal, to import less wheat. He said he hoped a spread between official and black market would be ended by June. But this week the local pound dropped to 80 for a dollar on the black market versus the official rate at 45.
He said the 2020 budget would have sustainable development targets for education, health care and social spending, suggesting Sudan might move away from the dominant military spending choking development.


France congratulates new Lebanon president, calls for ‘strong government’

Updated 5 sec ago
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France congratulates new Lebanon president, calls for ‘strong government’

  • French foreign ministry said Joseph Aoun's election “opens a new page" for Lebanon

PARIS: France on Thursday welcomed the election by Lebanese lawmakers of army chief Joseph Aoun as president after a two-year vacuum at the top, urging the formation of a strong government to drag the country out of a political and economic crisis.
Extending France’s “warm congratulations” to Aoun, the French foreign ministry said his election “opens a new page for the Lebanese” and urged “the appointment of a strong government” that can help the country recover.


Italian foreign minister to meet Syria's new rulers in Damascus

Updated 50 min 6 sec ago
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Italian foreign minister to meet Syria's new rulers in Damascus

  • Antonio Tajani said he would push Syria’s transitional government to pursue an “inclusive political process”

ROME: Italy’s Foreign Minister Antonio Tajani said Wednesday he would travel to Syria Friday where he plans to announce an initial development aid package for the country ravaged by years of war.
Tajani’s trip follows those by his French and German counterparts, who visited the Syrian capital last week to meet Syria’s new rulers after they toppled Bashar Assad's regime in a lightning offensive last month.
“It is essential to preserve territorial integrity and prevent (Syria’s) territory from being exploited by terrorist organizations and hostile actors,” Tajani told parliament.
Western powers have been cautiously hoping for greater stability in Syria, a decade after the war triggered a major refugee crisis that shook up European politics.
Tajani did not provide any details about what he called a “first package of aid for cooperation and development.”
Tajani said he would push Syria’s transitional government to pursue an “inclusive political process” that “recognizes and enhances the role of Christians as citizens with full rights.”
Ahead of his trip, Tajani is set Thursday to meet with the foreign ministers of France, Germany, Britain and the United States over the Syria situation, with the drafting of a new constitution and Syria’s economic recovery on the agenda.
The EU’s foreign affairs chief, Kaja Kallas, was expected in Rome for the meeting.


Thousands of Alawites mourn 3 killed by foreign Islamists: monitor, witness

Updated 50 min 48 sec ago
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Thousands of Alawites mourn 3 killed by foreign Islamists: monitor, witness

  • “Thousands of mourners gathered at the funeral of three Alawite farmers from the same family,” said the Syrian Observatory for Human Rights
  • The civilians were killed on Wednesday in the village of Ain Sharqia

DAMASCUS: Thousands of Syrians from ousted President Bashar Assad’s Alawite community mourned on Thursday three civilians killed by foreign Islamist allies of the country’s new authorities, a war monitor and an attendee said.
Since Assad’s ouster, violence against Alawites, long associated with his clan, has soared, with the monitor recording at least 148 killings.
“Thousands of mourners gathered at the funeral of three Alawite farmers from the same family, including one child, killed by foreign Islamist fighters allied to Syria’s new authorities,” said the Syrian Observatory for Human Rights war monitor.
The civilians were killed on Wednesday in the village of Ain Sharqia, in the Alawite heartland of Latakia province, the Observatory said.
“Down with the factions,” some of those in attendance chanted in reference to armed groups, according to footage shared by the monitor.
Mourner Ali told AFP that people had called for those responsible for the killings to be punished and for foreign fighters to leave so that local policemen affiliated with the new authorities could take their place.
“We can’t have people die every day,” he said, asking to be identified only by his first name to discuss sensitive matters.
“We want security and safety to prevail; we support the transitional authorities. We do not want any more killings after today.”
Rami Abdel Rahman, who heads the Observatory, told AFP the mourners also demanded that Syria’s new rulers free thousands of detained soldiers and conscripts.
The Alawite community was over-represented in the country’s now-defunct armed forces.
On Tuesday, three Alawite clerics were also killed by unknown gunmen on the road from Tartus to Damascus, the monitor said.
Another cleric and his wife were found dead in the Hama countryside Thursday after they were abducted a day earlier.
Last month, angry protests broke out in Syria over a video showing an attack on an Alawite shrine, with the Observatory reporting one demonstrator killed in Homs city.
Syrian authorities said the footage was “old” and that “unknown groups” were behind the attack, saying republishing the video served to “stir up strife.”
The alliance spearheaded by the Islamist group Hayat Tahrir Al-Sham (HTS), which seized Damascus and ousted Assad on December 8 after a lightning offensive, has sought to reassure minority communities in the Sunni Muslim majority country.
Assad had long presented himself as a protector of minority groups.


Lebanon’s new president promises to rebuild what ‘Israel has destroyed’

Lebanese Parliament Speaker Nabih Berri and Lebanon’s army chief Joseph Aoun after Aoun is elected as the country’s president.
Updated 55 min 27 sec ago
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Lebanon’s new president promises to rebuild what ‘Israel has destroyed’

  • The Mediterranean country has been without a president since the term of Michel Aoun ended in October 2022

BEIRUT: Newly elected Lebanese president Joseph Aoun has promised to rebuild what the Israeli occupation has destroyed, in a speech before parliament after taking his oath of office.

The Lebanese state will be able to remove Israeli occupation and the effects of its aggression, Aoun said, after hurdling the second round of voting in parliament to become the country’s new president.

“I promise to reconstruct what Israel destroyed in the south and Beirut’s southern suburbs,’ he said.

The newly elected president also touched on the Palestinian issue, saying he rejects the settlement of Palestinian people and guaranteed their right to return.

He also pledged to work towards the best of relations with Arab countries, and cooperate with Syria to control the borders from both sides.

The Mediterranean country has been without a president since the term of Michel Aoun – not related – ended in October 2022, with tensions between the Iran-backed Hezbollah movement and its opponents scuppering a dozen previous votes.

During parliament’s first session on Thursday morning, 71 out of 128 lawmakers voted in favor of the army commander, short of the required 86, in the first round of the vote.

Thirty-seven members of parliament voted blank, including 30 lawmakers from the pro-Hezbollah bloc, according to a source close to it.

Twenty ballots were declared null and void.

Aoun received 99 votes during the second round, more than the minimum votes required for him to be voted into office.

But international pressure has mounted for a successful outcome with just 17 days remaining in a ceasefire to deploy Lebanese troops alongside UN peacekeepers in south Lebanon after a Hezbollah-Israel war last autumn.

Speaker Nabih Berri then suspended the session until 2:00 p.m. sparking outrage from some lawmakers who demanded an immediate second vote.

The president’s powers have been reduced since the end of the 1975-1990 civil war. But filling the position is key to overseeing consultations toward naming a new prime minister to lead a government capable of carrying out reforms demanded by international creditors.

Lebanon’s divided political elite usually agrees on a consensus candidate before any successful parliamentary vote is held.

Aoun, who will turn 61 on Friday, appears to have the backing of the United States and key regional player Saudi Arabia.

US, Saudi and French envoys have visited Beirut to increase pressure in the run-up to the vote.

Pope Francis on Thursday expressed hope that Lebanon could “possess the necessary institutional stability... to address the grave economic and social situation.”

Several lawmakers have objected to what they see as foreign interference in the vote.

In protest, some rendered their ballot void by voting for “sovereignty and the constitution,” a reference to the fact that Aoun’s election would also require a constitutional amendment.

Under Lebanon’s constitution, any presidential candidate must have not held high office for at least two years. Aoun is still head of the army, after extending his mandate past his planned retirement.

Critics have accused Hezbollah and allies of scuppering previous votes.

But a full-fledged war between Israel and Hezbollah last autumn dealt heavy blows to the Shiite militant group, including the death of its longtime leader Hassan Nasrallah in an air strike.

In neighboring Syria, Hezbollah has lost a major ally after militants toppled President Bashar Assad last month.

Under multi-confessional Lebanon’s power-sharing system, the president must be a Maronite Christian. Aoun is Lebanon’s fifth army commander to become president, and the fourth in a row.

Military chiefs too are, by convention, Maronites.

The new president faces daunting challenges, with the truce to oversee on the Israeli border and bomb-damaged neighborhoods in the south, the east and the capital to rebuild.

Since 2019, Lebanon has been gripped by the worst financial crisis in its history.

The Hezbollah-Israel war has cost Lebanon more than $5 billion in economic losses, with structural damage amounting to billions more, according to the World Bank.


UN migration agency appeals for $73 million in aid for Syria

Updated 09 January 2025
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UN migration agency appeals for $73 million in aid for Syria

  • UN’s International Organization for Migration more than doubling an appeal launched last month for Syria
  • The Geneva-based agency said it was working to reestablish its presence inside Syria

GENEVA: The UN migration agency on Thursday expanded an aid appeal for Syria to over $73 million, as the country transitions after years of civil war and decades of dictatorship.
The United Nations’ International Organization for Migration said it was more than doubling an appeal launched last month for Syria, from $30 million to $73.2 million, with the aim of assisting 1.1 million people across Syria over the next six months.
“IOM is committed to helping the people of Syria at this historical moment as the nation recovers from nearly 14 years of conflict,” IOM chief Amy Pope said in a statement.
“IOM will bring our deep experience in humanitarian assistance and recovery to help vulnerable communities across the country as we work with all partners to help build a better future for Syria.”
The Geneva-based agency said it was working to reestablish its presence inside Syria, after exiting Damascus in 2020, building on its experience working there in the preceding two decades, as well as on its cross-border activities in the past decade to bring aid to northwest Syria.
It said it aimed “to provide immediate assistance to the most at-risk and vulnerable communities, including displaced and returning groups, across Syria.”
The requested funds, it added, would be used to provide essential relief items and cash, shelter, protection assistance, water, sanitation, hygiene and health services.
They would also go to providing recovery support to people on the move, including those displaced, or preparing to relocate.
The dramatic political upheaval in Syria after the sudden ousting last month of strongman Bashar Assad after decades of dictatorship has spurred large movements of people.
Half of Syria’s population were forced from their homes during nearly 14 years of civil war, with millions fleeing the country and millions more displaced internally.
The UN refugee agency has said it expects around one million people to return to the country in the first half of this year.
And by the end of 2024, the UN humanitarian agency had already recorded the returns of nearly 500,000 people who had been internally displaced inside Syria, IOM pointed out.