This week (Tuesday 29), with UK support, Sudan’s $1.4 billion in arrears owed to the International Monetary Fund (IMF) has been cleared, allowing it to access new financing to boost its economic recovery.
Sudan’s clearing of its arrears was supported with £36 million from UK reserves at the IMF.
An additional £148 million one-day loan from the UK, announced by the UK Foreign Secretary Dominic Raab in May, has previously helped Sudan clear its arrears at the African Development Bank.
This major milestone in Sudan’s economic development means the new government can now access billions of dollars of fresh funding from multilateral organisations, to spend on healthcare and education, improving the lives of its people and helping the transition towards democracy.
UK Minister for Africa, James Duddridge said:
This is a huge step forward for Sudan. I congratulate Sudanese Prime Minister Abdalla Hamdok and his government for this major achievement.
The UK is committed to supporting Sudan as it continues to pay off its crippling debts, making the country more attractive to investors, and its people healthier and more prosperous.
The UK used its G7 Presidency to agree an ambitious financing package to enable the clearance of Sudan’s IMF arrears with G7 Finance Ministers and other international partners at the IMF Board in June.
Chancellor of the Exchequer Rishi Sunak said:
I congratulate the Sudanese government on reaching this important milestone.
The UK’s G7 Presidency has galvanised the international community to back this ambitious package, which will unlock vital finance to address Sudan’s urgent development, stabilisation and humanitarian needs.
The Foreign Secretary visited Sudan in January this year to reinforce the UK’s support for the Government of Sudan as it moves towards democracy.
As of today, $2.9bn of Sudan’s arrears to the World Bank, African Development Bank and IMF have been cleared in total, removing the main barrier to accessing new funds from these multilateral institutions.
This puts the country in a strong position to work towards clearing its bilateral debt with other nations, ultimately making its repayment of debt more sustainable.