This archive report was first published on 11 May 2021.
On May 10, 2021, the IMF executive board approved a financing plan to cover its share of debt relief to Sudan, a move that marks a critical step in helping the country advance the process of normalizing relations with the international community.
According to IMF Managing Director Kristalina Georgieva, the plan relies on a broad effort of IMF member countries, including cash grants and contributions derived from IMF internal resources.
The total amount of the financing was not disclosed, but the IMF and World Bank estimated Sudan's total external debt at $49.8 billion as of the end of 2019.
The aid is part of a rapprochement between the United States and Sudan following the ouster of strongman Omar al-Bashir in April 2019.
As part of the rapprochement, the US Treasury announced $1.15 billion in bridge financing in March to help clear Sudan's arrears at the World Bank, a key step in getting relief for the country's external debt.
US President Joe Biden has continued the thaw, with the Treasury encouraging other governments to join in the effort to provide relief under the Heavily Indebted Poor Countries (HIPC) initiative backed by the IMF and World Bank.
Georgieva called the relief 'a priority for the IMF' and expressed her encouragement by the support from IMF members and their recognition of Sudan's progress on economic reforms.
