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IMF Says it's 'Monitoring' Developments in Sudan

IMF Says it's 'Monitoring' Developments in Sudan

Wednesday, 27 October, 2021 - 03:30
The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, United States, September 4, 2018. Reuters

The IMF on Tuesday said it was following events in Sudan after a military coup that saw the prime minister deposed and major donors suspend aid.

"It is premature to comment on the implications of recent events in Sudan, but we are monitoring the developments carefully," a spokeswoman for the Washington-based crisis lender told AFP.

The coup comes just over two years into a delicate power-sharing arrangement between the military and civilians after the army's ouster during enormous street protests in April 2019 against Omar al-Bashir.

The military on Monday seized Prime Minister Abdalla Hamdok and briefly detained him, however on Tuesday his office said he had been brought home along with his wife.

Sudan had been emerging from decades of stringent US sanctions after Washington removed the country from its state sponsor of terrorism blacklist in December 2020, eliminating a major hurdle to much-needed aid and financial investment.

The World Bank and IMF in June granted Sudan debt relief under the Heavily Indebted Poor Countries Initiative, cutting the nation's debt in half to about $28 billion, and the institutions have offered additional help if economic reforms continue.

However, following the coup, the United States, a key backer of the transition, strongly condemned the military's actions and suspended hundreds of millions of dollars in aid.

The European Union late Tuesday threatened "serious consequences" for Sudan's rulers, including to financial support.

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