China Development Bank provides $1.5 billion loan to the Sudan National Petroleum Corporation for budget support

Project narrative

On December 31, 2012, China Development Bank (CDB) signed a $1.5 billion loan agreement with Sudan National Petroleum Corporation (Sudapet). The loan reportedly carried a grace period of 5 years, but the maturity and interest rate are unknown. China National Petroleum Corporation (CNPC) provided a guarantee for the loan. The purpose of this loan was to help the Government of Sudan address its unmet budgetary needs and stabilize the Sudanese pound. At the time that the loan agreement was signed, the Government of Sudan had seen a major slide in its currency after losing three quarters of its oil production when South Sudan seceded in 2011. The currency slide, in turn, fueled inflation and protests. Oil revenues had previously been the main revenue source for the government budget. Oil revenues also provide the hard currency needed to buy basic food imports such as wheat and sugar.