IMF Announces Financing Plan to Relieve Sudan’s Debt
The IMF’s board on Monday approved a financing plan “to cover its share of debt relief in Sudan,” said Managing Director Kristalina Georgieva.
“This marks a crucial step in helping Sudan push forward the process of normalizing relations with the international community,” Georgieva said, adding that “the plan is based on a broad effort from IMF member countries, including donations in cash and contributions from internal IMF resources. “
The amount of funding was not disclosed, but the IMF and World Bank estimated Sudan’s total external debt to be around $ 49.8 billion at the end of 2019.
The US Treasury announced in March interim financing of $ 1.15 billion to help clear Sudan’s arrears to the World Bank, a key step in securing relief from the country’s external debt after the government in Khartoum backed by civilians announced reforms.
The aid is part of a rapprochement between the United States and Sudan following the ouster of strongman Omar al-Bashir, who was toppled during street protests in April 2019 .
In the final months of former President Donald Trump’s administration, the United States removed Sudan from the list of terrorist-sponsoring states, a goal Khartoum long sought because the designation severely hampered investment.
US President Joe Biden, who took office in January, continued the thaw, as the Treasury last month encouraged other governments to join the aid effort under the Support Initiative. Heavily Indebted Poor Country (HIPC) supported by two Washington-based lenders. .
On Monday, Georgieva called relief a “priority for the IMF”.
“I am encouraged by the support of our members and their recognition of the progress made by Sudan in economic reform,” she said.
Debt relief will be granted “as soon as our members have provided the necessary financial commitments, provided that the authorities continue their reform efforts and meet the other requirements stipulated in the framework of the HIPC process,” she said. .