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Sudan: ‘We’re here to tell the IMF/World Bank to reconsider’ its sanctions, says Ibrahim

By Julian Pecquet

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Posted on October 17, 2022 11:34

 © Sudan’s Finance Minister Gibril Ibrahim (photo: @FinanceMinSudan)
Sudan’s Finance Minister Gibril Ibrahim (photo: @FinanceMinSudan)

Sudan attended the annual meetings of the IMF and the World Bank last week with a warning to its international creditors that restrictions imposed after the October 2021 coup threaten to undermine progress on economic reforms.

The two international financial institutions determined, back in June 2021, that Sudan had taken the necessary steps to begin receiving debt relief under the Heavily Indebted Poor Countries (HIPC) initiative. The process made Sudan eligible for almost $50bn in relief on its $56bn in debt as well as $2.5bn in IMF funding to help enhance competitiveness, transparency and accountability in an economy dominated by the military and security services.

The following month, the Paris Club signed a multilateral agreement, with Sudan agreeing to write off $14.1bn in debt.

In June 2022, however, the informal group of international creditors said it had suspended the debt removal process in the wake of the 25 October 2021 coup. The World Bank, for its part, took action right after the coup, suspending all aid to Sudan, while the HIPC process remains on pause.

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