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This paper attempts to examine the impacts of the extent of the external debt problem and its sustainability on the government’s efforts to reduce poverty and sustain growth and peace in the Sudan. It starts with defining the concepts of external debt and types of loans and then examines the details of the external debt profile, magnitude, composition and sources by creditors. It also lists the causes (both external and internal) of the debt problem in the Sudan. A major section of this paper is devoted to investigate the relationship between growth, debt and peace in the Sudan in order to generate some policy based recommendations to deal with the issues of poverty and growth in the country. The remaining sections discuss various issues pertaining to debt burden indicators, debt sustainability, the Sudan debt relief strategy for solving the problem of external debt in the 1980s, and the new borrowing and investment policies. The final section gives some conclusions and policy recommendations.

External Debts, Growth and Peace in the Sudan: Some Serious Challenges Facing the Country in the Post-Conflict Era