EU, US welcome IMF and World Bank HIPC decision on Sudan
The international community has responded enthusiastically to the announcement on Tuesday by the World Bank and the International Monetary Fund (IMF) that Sudan has successfully reached decision point under the Heavily Indebted Poor Countries (HIPC) Initiative. . As a result of this decision, Sudan will benefit from foreign debt relief of $ 50 billion, reducing the country’s current estimated foreign debt from $ 56 billion to $ 6 billion over three years.
In a joint Brussels statement yesterday, EU High Representative Josep Borrell and Commissioner for International Partnerships Jutta Urpilainen called the decision “another important step in Sudan’s transition to democratic governance and recovery. economic”.
The statement underlines that the HIPC decision was made possible by “the considerable efforts and commitment of the Sudanese people and the transitional government”. It will allow Sudan to significantly reduce its total debt and access much-needed financing from international financial institutions. This was also made possible thanks to the support of the international community, including the EU, which has supported Sudan’s debt relief in its largest operation since the adoption of the HIPC Initiative.
HIPC decision is “another important step in Sudan’s transition to democratic governance and economic recovery” – EU
Borrell and Urpilainen’s statement concludes that “the EU is one of Sudan’s main partners and remains firmly committed to supporting Sudan’s democratic transition, both politically and financially. It is fundamental that this historic transition remains on track and does not suffer further from a very disturbed regional situation ”.
From Washington, the US Treasury Department has also welcomed the IMF’s announcement that Sudan has successfully cleared about $ 1.4 billion in arrears to the IMF, and commends the transitional government of Sudan for reaching the first phase of debt relief under the HIPC initiative.
In a statement released yesterday, the US Treasury said today’s milestone demonstrates the Sudanese authorities’ sustained commitment to implement difficult but necessary economic reforms as the country transitions to a regime. democratic. These reforms include the unification of the exchange rate and the strengthening of governance and transparency.
“This is a historic moment for Sudan and its people… All Sudanese can be proud of this achievement” – US Treasury Secretary Janet L. Yellen
“This is a historic moment for Sudan and its people,” said US Treasury Secretary Janet L. Yellen. “The United States is proud to have been one of the first advocates for Sudan to normalize its ties with international financial institutions and help it obtain debt relief. These measures will unlock much-needed finance and help lay the foundations for poverty reduction, inclusive development and economic growth. All Sudanese can be proud of this achievement.
The statement underscores that the United States has played a critical role in supporting Sudan on the path to HIPC debt relief, in recognition of the important work that the Government of Sudan has undertaken to restore economic stability. “The Treasury provided about $ 1.15 billion in same-day bridging funding in March to help Sudan clear its arrears to the World Bank at no cost to U.S. taxpayers, and co-hosted a roundtable with the State Department to encourage Sudan’s bilateral creditors to advance debt relief efforts. The statement says.
He added that the Treasury has also pledged to contribute up to $ 120 million in grants to finance IMF debt relief in Sudan under the first phase of the HIPC Initiative announced today. The United States is pleased to join other Paris Club members in providing immediate and future debt relief in accordance with the provisions of the HIPC Initiative and will continue to support Sudan in implementing the additional economic reforms needed. to complete the HIPC process, according to the US Treasury statement. concludes.
Yesterday, the head of the United Nations Integrated Transitional Assistance Mission in Sudan (UNITAMS), Volker Perthes, hailed Sudan joining the ranks of the Heavily Indebted Poor Countries (HIPCs) as an important step that will lead to its debt relief. “This decision will open spheres of cooperation with development and funding partners to support sustainable development, fight poverty and increase investment,” Perthes commented via social media.