The International Monetary Fund (IMF) said on Tuesday it had secured sufficient funding pledges to allow it to provide full debt relief to Sudan, clearing a final hurdle to broader external debt relief of at least $ 50 billion.
More than 100 IMF member countries have pledged more than $ 1.415 billion in financing that will clear Sudan’s arrears to the IMF, the IMF said in a statement. Sudan is emerging from decades of economic sanctions and isolation under ousted former President Omar al-Bashir.
It had accumulated huge arrears on its debt, but made rapid progress towards canceling much of it under the Heavily Indebted Poor Countries (HIPC) program of the IMF and the World Bank. , which would reopen access to much-needed cheap international finance. “Sudan is now one step closer to 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, “IMF Managing Director Kristalina Georgieva said in the statement. .
A power-sharing military-civilian transitional government is trying to pull the country out of a deep economic crisis with inflation over 300% and commodity shortages fueled by a lack of foreign exchange reserves. In order to reach the “decision point” that would unlock the HIPC process later in June, Sudan recently cleared its arrears to the World Bank and the African Development Bank through bridging loans from Western states.
The country has also seen rapid economic reforms, most notably on Tuesday when it removed its customs exchange rate, used to calculate import duties, as the final step in a devaluation of its local currency. The remaining step was to clear Sudan’s arrears to the IMF, which France confirmed it would facilitate through a $ 1.5 billion bridging loan, and that this loan would be covered by commitments. Member States.
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