The Executive Board of the International Monetary Fund approved a plan to monitor a 12-month economic program prepared by Sudan as it seeks to show its ability to implement reforms, and to move towards eventually debt forgiveness.
"Sudan's transition to a transitional government has given it an opportunity to undertake fundamental reforms to address major macroeconomic imbalances and to pave the way for achieving comprehensive growth," said Antoinette Sayeh, Deputy Managing Director of the fund, noting that "Sudan's massive external debts and long-standing arrears continue to limit its capacity on external borrowing, including from the fund."
Sudan needs financial aid to reorganize its economy, as the inflation rate reached 167 percent in August, and the currency has also slumped as the government printed money to subsidize bread, fuel and electricity. Sudan had asked IMF experts to monitor its reforms and help Khartoum establish a strong record of implementing policies and reforms, which is a prerequisite for eventual debt forgiveness, knowing that such agreements do not include financial assistance or constitute explicit support for the actual program.
Sayeh emphasized that "Sudan's program includes reforms aimed at stabilizing the economy, removing distortions, improving competitiveness and strengthening governance," noting that "the Coronavirus pandemic has exacerbated the challenges facing Sudan."
Source (Al-Araby Al-Jadeed Newspaper, Edited)
