Sudan has secured enough financing to pay off debt with IMF, says Kristalina Georgieva
(Ecofin Agency) – In the midst of a democratic transition, Sudan is accelerating the reforms necessary for its economic recovery. The country plans to obtain 80% relief on its external debt through the HIPC initiative, which requires the initial repayment of arrears owed to the IMF.
The Sudanese state will finally be able to settle all its arrears to the International Monetary Fund (IMF). This was announced by the director general of the institution, Kristalina Georgieva (photo), in a statement released on Tuesday, June 22.
According to her, Sudan has mobilized enough funding from its partners to repay its debt to the Bretton Woods institution. In total, “101 IMF member countries have pledged more than SDR 992 million ($ 1,415.7 million) in financing” to Khartoum to repay its arrears.
This announcement strengthens Sudan’s desire to join the Heavily Indebted Poor Countries (HIPC) initiative from which the country has been hoping to benefit for several months. Since coming to power in 2019 after the fall of Omar al-Bashir, the transitional government led by Prime Minister Abdalla Hamdok has worked hard to bring Sudan back into the international financial system. The objective is to mobilize the necessary financing to revive the economy and accelerate development projects.
To this end, political, economic and social reforms were implemented to remove the country from the list of American terrorism and obtain the help of several partners to settle the arrears owed to the World Bank, the African Development Bank. (ADB) and now the IMF.
“The Fund will continue to help Sudan recover from a long period of instability and economic hardship. […] Sudan is now on the verge of reaching the HIPC decision point, a milestone that will significantly reduce Sudan’s total debt and allow access to new funds and new investments essential to boost growth and fight poverty. ”Said Kristalina Georgieva.
Note that following the recent Paris summit, Prime Minister Hamdok announced his government’s intention to obtain relief of about $ 45 billion, or 80%, of its external debt estimated at $ 60 billion. dollars.
Moutiou Adjibi Nourou