Sudan passes second IMF review in step nearer debt relief – minister

CAIRO (Reuters) – Sudan has passed its second review under the International Monetary Fund’s staff-monitored programme in a step towards debt relief, its finance minister said on Friday.

Clearing the second review paves the way for Sudan to be approved for debt relief under the Highly Indebted Poor Countries (HIPC) process “which will hopefully result in a substantial debt relief for (Sudan) as well as new credit lines,” Jibril Ibrahim said on Twitter.

Sudan is expected to reach the “decision point” for HIPC debt relief in June, at the end of a year-long IMF-monitored economic reform programme and after a conference in Paris later this month to promote investment and debt relief.

The country is seeking to clear at least $50 billion in debt, mostly with bilateral creditors.

It has recently secured bridge loans from donors to clear arrears on debt with the World Bank and the African Development Bank. A French diplomat indicated last month that France could provide funding for Sudan to also clear arrears with the IMF and proceed with HIPC.

Sudan is emerging from decades of economic isolation and sanctions under former leader Omar al-Bashir, who was toppled in 2019 after mass protests triggered by an economic crisis.

Source: Read Full Article