Sudan and the International Monetary Fund (IMF) have been involved in negotiations aimed at implementing a monitoring program by the Fund’s experts for the Sudanese economy.
The Staff-Monitored Program seeks to open doors for international financing and investment in major development, infrastructure, peacebuilding, and job creation projects for youth, Finance Minister Ibrahim Elbadawi said on Sunday.
The non-funded program could pave the way for international financial support. It is expected to allow the country to settle its financial arrears, debt forgiveness, and grants from the International Development Association (IDA).
“We have a long road ahead of us to undo the damage to our economy. However, this engagement is an initial step to open the door for direct budget support, which is needed to finance the major development projects,” Elbadawi noted
The talks will allow Sudan to restore its proper position in the international monetary system, he stressed.
IMF communications director Gerry Rice, for his part, said that Sudan had requested talks, which he expected to be completed by around the fourth week of June.
The program would be “a way for Sudan to show a track record of good policy implementation,” Rice said.
“By showing such a track record, it can help Sudan toward clearing its arrears to the IMF, which in turn, and this is the key, can unlock financing from other sources as well.”
Sudan has debts of around $62 billion, including arrears of around $3 billion to international financial institutions, Elbadawi said in October.
Khartoum is in desperate need of financial help to reorganize its economy. Inflation has been running at 99 percent and the currency tumbling as the government prints money to subsidize bread, fuel, and electricity.
