China to Exempt Sudan from 345 Million Yuan in Debt

1 January 2026

The Undersecretary for Planning at the Sudanese Ministry of Finance discussed with the Chinese Charge d'affaires (right) Beijing's support for several Sudanese projects

January 1, 2026 (PORT SUDAN) – China plans to exempt Sudan from repaying 345 million yuan ($45 million) in interest-free loans previously provided to finance various development projects, the Sudanese Ministry of Finance and Planning said in a statement.

The move followed an extensive meeting on Wednesday between Mohamed Bashar, Undersecretary for Planning at the Sudanese Ministry of Finance, and Zhang Jian, the Acting Charge d’Affaires of the Chinese Embassy in Sudan. The two officials also reviewed the progress of a separate 200 million yuan ($28.58 million) grant allocated for infrastructure projects in Sudan’s water, agriculture, and electricity sectors.

The Chinese envoy expressed Beijing’s readiness to provide further assistance through United Nations organizations. This support will focus on solar energy projects for drinking water stations in Khartoum, Gezira, Sennar, and Blue Nile states.

Sudan’s public debt-to-GDP ratio reached 147% in 2024, according to World Bank data. While the ratio is projected to decline to 124% in 2026 and 106% by 2027, the country’s fiscal position remains precarious.

International financial institutions noted that Sudan had been making progress toward debt relief under the Heavily Indebted Poor Countries (HIPC) initiative before October 2021. However, that momentum was derailed by political instability and the subsequent war between the army and the Rapid Support Forces.

Currently, the Sudanese government is unable to issue new public debt bonds, leaving the central bank to fund the deficit through monetary expansion. Expenditures are expected to rise to 9.9% of GDP in 2026, outpacing a projected revenue increase of 6.2% of GDP, as the lack of formal debt relief continues to strain the national budget.