IMF offers Sudan USD 2.74 bln loan to finance reform agenda

(MENAFN - Kuwait News Agency (KUNA)) WASHINGTON, June 29 (KUNAA) -- The Executive Board of the International Monetary Fund (IMF) approved Tuesday a 39-month arrangement under the Extended Credit Facility (ECF) for Sudan in the amount of about USD 2,472.7 million."The Executive Board's decision will enable an immediate disbursement equivalent to about USD 1,414.7 million," the IMF said in a statement.The IMF added that "the arrangement aims to support the authorities' implementation of their ambitious reform agenda and catalyze concessional donor financing." "This will help the country build greater economic resilience, promote higher and more inclusive growth, and reduce poverty and raise living standards," it continued.Meanwhile, the chiefs of the World Bank David Malpass and IMF Kristalina Georgieva announced in a joint statement a "landmark achievement" for Sudan as it has reached "the Heavily Indebted Poor Countries (HIPC) Decision point"."This landmark achievement sets Sudan on the path to freeing the country from the heavy debt burden inherited from the past," they said.They congratulated the Sudanese government and people "for their commendable hard work and progress toward this remarkable milestone"."We thank all those donors and partners who have contributed to this effort, including much needed early support to protect the most vulnerable, through the USD 820 million Sudan Family Support Program jointly financed with IDA pre-arrears clearance grants and donor support," they added.The Executive Boards of the World Bank's International Development Association (IDA) and the IMF determined earlier today that Sudan has taken "the necessary steps" to begin receiving debt relief under the enhanced HIPC Initiative. Sudan is the 38th country to reach this milestone, known as the HIPC Decision Point, becoming the 38th country eligible to receive debt relief under the initiative.Furthermore, the US Department of Treasury said in a statement it welcomes today's announcement from the IMF that Sudan has "successfully cleared roughly USD 1.4 billion in arrears to the IMF and commends Sudan's civilian-led transitional government" for reaching the first phase of debt relief under the HIPC initiative."This is a historic moment for Sudan and its people," said Secretary of the Treasury Janet Yellen. "The US is proud to have been an early advocate for Sudan to normalize ties to the international financial institutions and helping it to secure debt relief".She affirmed that "these steps will unlock much-needed financing and will help build the foundation for poverty reduction, inclusive development, and economic growth".Sudan is the last country to clear protracted arrears to the IMF, which now faces no repayment arrears from its members for the first time since early 1975, the Treasury noted. (end) si.ibi MENAFN29062021000071011013ID1102365481