WORLD / AFRICA
IMF announces financing plan aimed at Sudan debt relief
IMF takes aim at Sudan debt relief in financing plan
Published: May 11, 2021 06:33 PM
The IMF executive board on Monday approved a financing plan "to cover its share of debt relief to Sudan," Managing Director Kristalina Georgieva announced.

"This marks a critical step in helping Sudan advance the process of normalizing relations with the international community," Georgieva said, adding that the "plan relies on a broad effort of IMF member countries, including cash grants and contributions derived from IMF internal resources."

The amount of the financing was not disclosed, but the IMF and World Bank put Sudan's total external debt at an estimated $49.8 billion as of the end of 2019. 

The US Treasury in March announced $1.15 billion in bridge financing to help clear Sudan's arrears at the World Bank, a key step in getting relief for the country's external debt that comes after Khartoum's civilian-backed government announced reforms.

The aid is part of a rapprochement between the US and Sudan.

In the final months of former US president Donald Trump's administration, the US removed Sudan from a list of state sponsors of terrorism, a long-sought goal of Khartoum as the designation severely impeded investment. US President Joe Biden, who took office in January, has continued the thaw, with the Treasury encouraging other governments in April to join in the effort to provide relief under the Heavily Indebted Poor Countries initiative backed by the two Washington-based lenders.