IMF endorses Sudan’s ‘plan’

CAIRO, Sept 26, (AP): The International Monetary Fund has signed off on Sudan’s economic reform program, a move that can eventually allow the highly-indebted African country to get debt relief and move ahead with rebuilding its battered economy as it transitions to democratic rule.

Until the end of June 2021, IMF staff will be monitoring the implementation of a “home-grown” economic restructuring program that aims at “stabilizing the economy, removing distortions, improving competitiveness, and strengthening governance,” according to an IMF statement released Wednesday.

Sudan has been ruled by a transitional military-civilian government following last year’s pro-democracy uprising that toppled longtime autocrat Omar al-Bashir. Elections could possibly be held in late 2022. The current prime minister, Abdalla Hamdok, is a former economist with the United Nations.

Battered by decades of U.S. sanctions and mismanagement under al-Bashir, Sudan suffers from high inflation, a huge budget deficit and widespread shortages of essential goods, including fuel, bread and medicine. The country has close to $60 billion in foreign debt, meaning debt relief and access to foreign loans are widely seen as the country’s gateway to economic recovery.

“A key element to the success of the program is sufficient donor funding to support the population through the difficult transition to a well-functioning market-based economy,” said Antoinette Sayeh, IMF Deputy Managing Director and Acting Chair.

Earlier this year, Sudan requested the IMF endorse an economic plan that envisages several fiscal adjustments, including further eliminating fuel subsidies and broadening the tax base, the IMF statement added. The IMF’s backing is required for eventual debt relief by official creditors.

“Sudan’s external debt is high and with longstanding arrears which severely limit access to external borrowing,” said Sayeh.