The International Monetary Fund approved a debt relief process for Sudan, according to the country's finance ministry. The Heavily Indebted Poor Countries (HIPC) initiative, a debt relief process created in the early 2000s, will wipe out 85% of Sudan's debt, reducing debt from $50 billion to $8 billion.
"Sudan needs debt relief as the country emerges from 17 years of conflict and almost half of Sudan's people live in poverty,” said Eric LeCompte, the Executive Director of the religious development group Jubilee USA Network, which campaigned for the HIPC process more than 20 years ago. “Debt relief for Sudan means reducing child poverty and growing the country's economy."
In March, the United States loaned $1.1 billion to clear Sudan’s debt payment arrears to the World Bank and convened creditors to secure debt relief. A process also moved forward to cut Sudan's IMF debt in arrears.
“As Sudan struggles with the health and economic impacts of the coronavirus, debt relief is a critical resource for recovery," shared LeCompte.
Sudan is the 38th country to benefit, out of 39 countries eligible for the HIPC initiative. Eritrea is the remaining country.