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The Case for Conditioning International Financial Support to Sudan

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The Case for Conditioning International Financial Support to Sudan

Posted by Jenn Christian on August 21, 2012

The Case for Conditioning International Financial Support to Sudan

In early August 2012, the governments of Sudan and South Sudan concluded an agreement on oil and related financial transfers. Among other things, the agreement provides for South Sudan to transfer to Sudan, over a period of approximately three years, $3.028 billion. This cash transfer is in addition to the payment of identified fees for the use of pipelines and other oil infrastructure located in Sudan. The entire financial package that Juba will ultimately pay to Khartoum represents approximately one third of the total financial loss, or so-called financial gap, that Sudan sustained following South Sudan’s secession. Khartoum is expected to make up another third of the gap, while the international community is expected to contribute, through grants, debt forgiveness, and the lifting of sanctions, the final third.