Washington DC – On Monday, the International Monetary Fund approved a plan to pay for Sudan's debt owed to the financial institution. Using grants and internal resources, IMF leadership agreed to clear $1.3 billion in missed debt payments or arrears.
“The IMF approved an important step in the process for Sudan debt relief,” said Eric LeCompte, Executive Director of the religious development group Jubilee USA Network. "As Sudan wrestles with the pandemic and a 50% poverty rate, debt relief cannot come soon enough."
Sudan is on track to join thirty-seven countries that received debt relief under the Heavily Indebted Poor Countries Initiative, a plan won by debt relief advocates in the early 2000s.
“An important part of Sudan's debt relief process is that Sudan produces a poverty reduction plan," shared LeCompte who serves on United Nations finance expert groups.
If Sudan meets IMF economic reforms and clears remaining missed debt payments, the country could qualify for an 85% reduction of its $50 billion debt by June.
Read about Sudan's debt process and the US role in relief here.