Tuesday, June 30, 2026

China Cancels Tiny Portion of Sudan's Debt

 The Sudan Tribune published a report dated 29 June 2026 titled "China Forgives $50 Million of Sudan's Debt to Ease Economic Strain."

Sudan and China signed on 28 June an agreement to cancel about $50 million in four interest-free loans that China had provided to Sudan.

Comment:  China and Sudan have made much of this debt cancellation.  It is important to put it in perspective.  At the end of 2023, Sudan's total external debt stood at $66.8 billion. According to AIDDATA, a research lab at William & Mary, Sudan's debt to China at the end of 2021 totaled $18 billion. (See page 392 of the AIDDATA report here.)  

While any debt cancellation for Sudan is a welcome development, this particular decision does not even scratch the surface of Sudan's debt problem.