World Bank suspends aid to Sudan after military coup

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A person enters the building of the Washington-based global development lender, The World Bank Group, in Washington on January 17, 2019. - World Bank current President Jim Yong Kim announced on January 7, 2019, that he would cut short his tenure as president more than three years before his second term was to end. The World Bank Board said it would start accepting nominations for a new leader early next month and name a replacement for Kim by mid-April 2019. (Photo by Eric BARADAT / AFP) (Photo credit should read ERIC BARADAT/AFP/Getty Images)

The World Bank said Wednesday it has suspended aid to Sudan following the military takeover that deposed the prime minister.

“I am greatly concerned by recent events in Sudan, and I fear the dramatic impact this can have on the country’s social and economic recovery and development,” World Bank President David Malpass said in a statement.

It was the latest blow to Sudan, which had just won its way back into good standing with major Washington-based development lenders.

The military on Monday seized Prime Minister Abdalla Hamdok and briefly detained him in the coup that came just over two years into a precarious power-sharing arrangement between the military and civilians after the army ousted former president, Omar al-Bashir in April 2019.

The World Bank “paused disbursements in all of its operations in Sudan on Monday and it has stopped processing any new operations as we closely monitor and assess the situation,” Malpass said.

The United States also suspended aid to the country.

“We hope that peace and the integrity of the transition process will be restored so that Sudan can restart its path of economic development and can take its rightful place in the international financial community,” Malpass said.

The World Bank and IMF in June granted Sudan debt relief under the Heavily Indebted Poor Countries Initiative, cutting the nation’s debt in half to about 28 billion U.S. dollars and the institutions have offered additional help if economic reforms continue.

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