WB and IMF: Sudan is eligible for exemption of its foreign debts
The Washington-based International Monetary Fund and the World Bank issued yesterday a joint statement noting that Sudan’s repayment of its arrears to the World Bank would enable it to “re-engage fully with the World Bank Group after nearly three decades of disruption and paving the way for the country to reach nearly $ 2 billion in IDA grants to reduce poverty and achieve sustainable economic recovery.
The statement continued, “By paying its arrears, Sudan has also completed a major step of the requirements for obtaining a comprehensive exemption from external debt within the framework of the Heavily Indebted Poor Countries Initiative (HIBAC).”
The World Bank Group President David Malpass indicated: “This is a breakthrough at a time when Sudan needs the world’s help to support its development progress,” adding: “Steps taken so far, including settlement of arrears and exchange rate unification, will put Sudan on the path to debt relief, economic recovery and comprehensive development.” .
On Friday, the Sudan’s government announced the obtaining of a direct financing from the World Bank in the amount of $ 635 million, after it had paid its arrears with it through a “bridge” loan provided by the United States of America.
On its part, the United States affirmed on Friday, that it had provided more than one billion dollars in financial aid to Sudan, to help enable it to pay arrears to the World Bank, welcoming the reforms being undertaken by the Sudanese government.
The US administration headed by Joe Biden announced that it had implemented a financing agreement signed by former Treasury Secretary Stephen Mnuchin in January during a visit to Sudan, which has been facing for several years unrest due to the deteriorating economic situation.
On Thursday, the USA Treasury provided Sudan $ 1.15 billion for interim financing, in the form of loans to cover short-term needs, while Treasury Department did not allocate funds from the budget funded by taxes levied on Americans.
Meanwhile, the new Treasury Secretary, Janet Yellen, declared in a statement that the Sudanese transitional government “deserves to be noted for undertaking harsh but necessary reforms to restore the social contract with the Sudanese people.”
Treasury Secretary, Janet Yellen, has continued: “The financing will bring Sudan a step closer to easing the much-needed debt burden and helping the country to re-integrate into the international financial community,”
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