Paying arrears at the World Bank opens the door to $ 2 billion

Sudan paid its overdue debt to the International Development Association (IDA) *, allowing it to work fully with the World Bank again after nearly three decades, paving the way for the country to collect nearly $ 2 billion in subsidies to alleviate poverty. Sustainable economy. To recover.

Prime Minister Abdullah Hamdok said on Twitter: “We have paid Sudan’s accumulated arrears to the World Bank.” [family support] ** And start financing government development projects with a grant of $ 2 billion over two years.

Hamdok added, “This is the culmination of a difficult and painful process in which our people insist on achieving real victories, including dropping our name from the list of countries sponsoring terrorism and unifying and stabilizing the exchange rate.” To create a developing economy from which all our citizens benefit, indicating that the national project for which we are working is based on stability and economic prosperity because it is based on political consensus.

The repayment of debt accumulated in Sudan was facilitated through an emergency loan from the US Treasury, which was guaranteed in January.

Heavily Indebted Poor Countries Initiative (HIPC)

In a statement issued by Washington on Friday, the World Bank confirmed that by paying off its arrears, Sudan has also taken an important step to obtain comprehensive external debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.

“This is an achievement at a time when Sudan needs the world’s help to support its development progress,” said David Malpass, President of the World Bank Group. “The steps taken so far, including the settlement of arrears and the unification of the exchange rate, will put Sudan on the path to relieving the debt burden and achieving economic recovery and comprehensive development,” he added.

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Doctor. Gabriel Ibrahim, Sudanese Minister of Finance and Economic Planning, said, “Now that this late work is completed, we are looking forward to obtaining financing from the World Bank Group and other multilateral institutions to boost our economy and reach all parts of Sudan through transformative development. The US government facilitated the process. Clearing House, “which also supports our quest for more comprehensive debt relief.”

* The International Development Association (IDA) is the World Bank’s fund for the poorest countries. This backlog of work was repaid through a $ 1.15 billion bridge loan from the US government. IDA supports Sudan’s reform agenda through a development policy process that includes renewed engagement and reform. The reforms aim to support Sudan’s economic growth and poverty reduction program, make the Sudanese economy more competitive, increase transparency, increase investment, create jobs, and improve social protection.

** The Sudan Family Support Program (SFSP) is supported by many development partners through the Multi-Donor Trust Fund to Support Transition and Recovery in Sudan (STARS), including Canada, the European Union, Finland, France, Germany, Ireland, Italy and the Kingdom. Kingdom of Saudi Arabia, Netherlands, Norway, State and Peacebuilding Trust, Sweden and the United Kingdom. Together, these donors support World Bank grants to pay arrears, and provide total SFSP support of $ 820 million.

Megan Vasquez

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