The World Bank suspended its aid to Sudan after the military staged a coup against the civilian government.
Political leaders were arrested on Monday, sparking nationwide protests and international condemnations.
The African Union (AU) has also suspended Sudan from the blockade for the “unconstitutional” seizure of power. The United States froze $ 700 million (£ 508 million) in aid.
For the past two years, Sudan’s civilian and military leaders had been in a fragile power-sharing agreement.
The moves by the World Bank and the AU further put pressure on the coup leader, General Abdel Fattah Burhan, to restore civilian rule.
General Burhan was in charge of the power-sharing agreement and said the coup was necessary to avoid “civil war”. He insisted that Sudan is still moving towards democracy and elections in 2023, but his reasoning and sudden takeover have been broadly rejected.
World Bank President David Malpass said in a statement: “I am very worried about the recent events in Sudan and I fear the dramatic impact this may have on the recovery and on the social and economic development of the country”.
In March, Sudan was able to access $ 2 billion in grants from the World Bank for the first time in nearly 30 years, after finally paying off the debt he owed. During a rare visit to the capital Khartoum, Malpass said the country was making economic progress after years of deep crisis.
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The AU tweeted that while it welcomed the release of the prime minister, who was arrested on Monday, Sudan will remain suspended from its activities until civilian rule is restored.
Meanwhile, street protests continued for a third day, with at least 10 people killed after soldiers opened fire on the crowd. The troops reportedly went from house to house in Khartoum, arresting the organizers of the local protest.
Unions representing doctors and oil workers say they are joining the demonstrations, as do staff from the Sudanese Banking Association.
“We are firmly opposed to any military action and any form of dictatorship,” spokesman for the association, Abdul Rashid Khalifa, told the BBC.
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The agreement between the civilian and military leaders was signed in 2019 after the overthrow of longtime ruler Omar al-Bashir. Power sharing was designed to lead Sudan towards democracy, but it has proved fragile with a series of previous coup attempts, the latest just over a month ago.
Sudan’s economy has long been in dire straits, and ordinary people are in danger of suffering even more.
The shortage of bread and the skyrocketing prices of basic necessities led to mass protests and the overthrow of Omar al-Bashir two years ago.
Under his rule, Sudan became a pariah in the West. The civilian-led government that took office after his dismissal tried to rebuild international relations in order to obtain funding. Much of it is being lost now, threatening to derail Sudan’s economic recovery.
There have been suggestions that the coup leaders have the support of some Arab League states. But their room for maneuver is shrinking as international pressure builds.
The US said it was in talks with the Gulf states on the situation in Sudan, while the African Union’s decision to suspend its membership increases the isolation of the generals.
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