Sudan confirmed eligible for debt relief under HIPC initiative: official

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June 28, 2021 (KHARTOUM) – Sudan has reached the decision point and is now eligible for debt relief under the Highly Indebted Poor Countries (HIPC) initiative, the International Monetary Fund (IMF) decided on Monday.

“The Executive Board of the IMF has approved Sudan entry into HIPC – the Decision Point,” wrote Magdi Amin a Senior Advisor at the Sudanese Ministry of Finance on Twitter late on Monday.

Amin further said that Sudan would proceed to negotiations with the Paris Club in July.

The IMF is expected to issue an official statement on Tuesday.

Reaching the Decision Point means that a country is formally eligible for debt relief after having made sufficient economic reforms.

After reaching this first stage under the HIPC Initiative, the international financial institutions commit to reducing their debt to a sustainable level.

Sudan is expected to get full debt clearance or “completion point” within three years after implementing all the reforms agreed at the decision point.

IMF Managing Director Kristalina Georgieva on 22 June said that once the confirmation of HIPC Decision Point “will significantly reduce Sudan’s total debt and allow access to fresh funds and new investments critical to boost growth and fight poverty”.

Sudan’s debt has reached over $60 billion, according to the Sudanese officials. The IMF estimates it totalled $50 billion in 2019.

(ST)

Source: sudantribune