The Executive Board of the International Monetary Fund (IMF) approved a financing plan on Monday "to cover its share of the program to alleviate Sudan's debt," as announced by IMF Managing Director Kristalina Georgieva. Georgieva stated, "This represents a critical step in helping Sudan move towards normalizing its relations with the international community." She added that "the plan relies on a broad effort from IMF member countries, including cash grants and contributions from the IMF's internal resources."
Georgieva did not disclose any amount, but at the end of March, the IMF and the World Bank announced that Sudan's debt stood at approximately $49.8 billion at the end of 2019. At that time, the two international financial institutions had agreed on Sudan's "eligibility for debt relief through the enhanced initiative for heavily indebted poor countries."
Georgieva emphasized that relieving Sudan's debt burden is "a priority for the IMF." She added, "I am encouraged by our members' support and recognition of the progress made," noting that debt relief "will begin to be recognized" as soon as "members commit to fulfilling the necessary financial obligations" and "provided that authorities continue their reform efforts and meet other requirements stipulated in the enhanced initiative for heavily indebted poor countries."
The United States announced that it would provide $1.15 billion in financial aid to Sudan, supporting the country's transitional government. Last month, the United States and the IMF called upon more than 20 nations to provide full support for Sudan's debt relief process, confirming that Khartoum has made progress in implementing macroeconomic reforms.
This call was made during a roundtable held in a virtual space, organized by U.S. Deputy Treasury Secretary Andy Baukol with U.S. Special Envoy for Sudan Donald Booth, including representatives from over 20 countries and the Paris Club. During that meeting, Baukol highlighted the progress made by the transitional Sudanese government in implementing macroeconomic reforms but emphasized the "remaining steps" to achieve complete debt relief. He also urged "all IMF members to support the swift settlement of overdue obligations owed by Sudan to the IMF."
Sudanese Prime Minister Abdullah Hamdok, an economist educated in the UK, aims to end conflicts and recreate economic opportunities while closing the chapter on former President Omar al-Bashir, who ruled the country for three decades and was ousted by the military in April 2019 following an unprecedented popular uprising. In the final months of former President Donald Trump's administration, Washington removed Sudan from its list of state sponsors of terrorism, achieving a long-standing goal for Khartoum that significantly hindered foreign investments in the country.
