China writes off $50 million of Sudan's debt as civil war shrinks economy by 40 percent
A protocol signed in Port Sudan on June 28 cancels four interest-free Chinese loans totalling 344.52 million yuan; Beijing's finance minister framed it as proof that China has kept investing in Sudan while Western governments pulled back, and the deal takes effect immediately
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Summary
Sudan and China signed a debt-cancellation protocol in Port Sudan on June 28, under which Beijing wrote off four interest-free government loans totalling 344.52 million yuan, equivalent to roughly $50 million. Sudan's Finance Minister Gebreil Ibrahim and China's Chargé d'Affaires Xu Jian signed the agreement, which took effect immediately. The Central Bank of Sudan and China Development Bank are tasked with settling the affected accounts. Sudan's minister said China has continued to invest in Sudan throughout the civil war while Western governments have largely halted financial support.
Why it matters
The gesture is small relative to Sudan's total external debt, estimated above $56 billion before the 2023 war, and dwarfed by the economic damage of a conflict that has shrunk Sudan's economy by roughly 40 percent. But it signals that Beijing is actively reinforcing its relationship with Sudan's military-led government at exactly the moment Western and Gulf creditors are withholding support, and it protects Chinese oil-field investments by signalling continued backing for Port Sudan's administration.