CAIRO (AP) – Sudan on Wednesday said it had signed an agreement with the United States paving the way for the African nation to effectively normalize relations with Israel and wipe out some of its huge debt to the World Bank.
Justice Minister Nasredeen Abdulbari signed the agreement with U.S. Treasury Secretary Steven Mnuchin, according to the prime minister’s office.
“This is a very, very significant agreement. It would have a huge impact on the people of Israel and the people of Sudan, as they continue to work together on cultural and economic opportunities and trade,” Mnuchin said in comments to the state -run the SUNA news agency.
Abdulbari said that Sudan welcomed “the rapprochement that took place between Israel and the countries of the region, as well as the beginning of diplomatic relations, which we will work on, will form our side in the near future, for strengthen and expand them in the interests of Sudan and other countries in the region. “
Also during Mnuchin’s visit, the United States and Sudan signed a “memorandum of understanding” to facilitate the payment of the African country’s debt to the World Bank, the finance ministry said, a move that is widely regarded as a key step towards Khartoum’s economic recovery.
The ministry said the deal would allow Sudan to receive more than $ 1 billion a year from the World Bank for the first time in nearly three decades, when the country was designated a pariah state.
Sudan has more than $ 60 billion in external debt.
On October 23, President Donald Trump announced Sudan it would become the third Arab state to normalize ties with Israel as part of an agreement reached by the United States known as the “Abraham Accords” after the biblical patriarch revered by Muslims and Jews.
This followed after the North African nation agreed to put $ 335 million into a guarantee account to compensate the victims of US terrorist attacks. These include the 1998 bombings of U.S. embassies in Kenya and Tanzania by the al-Qaeda network while its leader, Osama bin Laden, lived in Sudan. The country was also believed to have served as a pipeline to Iran to supply weapons to Palestinian militants in the Gaza Strip.
In return, Trump notified Congress of his intention to remove Sudan from the U.S. list of state sponsors of terrorism, a key incentive for the deal.
There was no immediate comment from Israel on Wednesday.
The Trump administration announced diplomatic pacts last year between Israel and the UAE and Bahrain, the first since Jordan recognized Israel in the 1990s and Egypt in the 1970s. Morocco also established diplomatic ties with Israel. All the agreements are made with countries that are geographically distant from Israel and have played a minor role, if any, in the Arab-Israeli conflict.
The agreements have contributed to the severe isolation and weakening of the Palestinians by eroding a long Arab consensus that Israel’s recognition should only be given in exchange for concessions in the peace process.
While Sudan is not a regional power, establishing ties with Israel is deeply symbolic. Sudan hosted the 1967 Khartoum summit, where Arab countries vowed never to reach an agreement with Israel and, more recently, maintained close ties with Israeli enemies such as Hamas and Hezbollah.
Sudan is on a fragile path to democracy after a popular uprising led the military to overthrow longtime autocrat Omar al-Bashir in April 2019. The county is now ruled by a military and civilian government. set looking for better links with Washington and the West.
During his visit, Mnuchin met with General Abdel-Fattah Burhan, head of the ruling sovereign council, and Prime Minister Abdalla Hamdok.
This is the first visit by a U.S. Treasury chief to Sudan, he assured. Secretary of State Mike Pompeo in August he became the first American diplomat to visit Sudan since 2005, when he was visited by Condoleezza Rice.
The visit took place “at a time when our bilateral relations are making historic leaps towards a better future. We plan to make tangible progress today as our relationships enter a #NewTime, ”Hamdok tweeted.
The Ministry of Justice said last month that the US would give a $ 1 billion bridge loan to the World Bank on behalf of Sudan, in addition to the $ 1.1 billion in direct and indirect US aid
Since the expulsion of al-Bashir, Sudan has been ruled by a joint military and civilian government seeking better ties with the West. It has been struggling with a huge budget deficit and a widespread shortage of essential goods, including fuel, bread and medicine.
Annual inflation rose past 200% in recent months as prices for bread and other commodities rose, according to official data.
Mnuchin’s visit came amid growing tensions between the Sudanese transitional government’s military and civilians. These tensions, which have resurfaced in recent weeks, have largely focused on the army’s economic assets, over which the Ministry of Finance, under civilian management, has no control.
John Prendergast, co-founder of the surveillance group The Sentry, said Mnuchin should put pressure on military and security apparatuses to allow for “independent oversight” of the companies they control.
“While Secretary Mnuchin is committed to Khartoum’s leadership, it is crucial to have strong support for international standards against money laundering and fiscal transparency, which are essential for Sudan to counter the looting of its national economy.” he said.
Mnuchin flew to Sudan from Cairo, where he met with Egyptian President Abdel-Fattah el-Sissi, a close US ally. The stops are part of a wave of activities during the last days of the Trump administration.
Mnuchin later tweeted that he was heading to Israel “for important meetings.”
—-
Associated Press writer Joe Federman in Jerusalem contributed.