Washington — The International Monetary Fund (IMF) stated on Friday that the US government’s plans to lift Sudan from the list of states sponsoring terrorism would remove one of the obstacles facing the heavily indebted country in its quest to ease the debt burden.
The Head of the IMF mission in Sudan, Carol Baker, said that the IMF is encouraged by the US administration’s official notification to the Congress on its intention to remove Sudan from the terrorism list, explaining that the removal of Sudan from the list takes away one of the obstacles that prevent alleviating the debt burdens of the heavily indebted poor countries.
The International Monetary Fund and the World Bank launched the Heavily Indebted Poor Countries Initiative in 1996 to ensure that no poor country faces a debt burden that it cannot manage, but the process is a long one and will require major reforms from Sudan.
The International Monetary Fund approved last month plans to monitor a 12-month economic reform program that is being implemented by Sudan’s new transitional government as it seeks to gain international confidence and to move towards eventual debt relief.
The high external debts and arrears for a long time are still limiting its access to external loans, including those from the International Monetary Fund (IMF).
The total of Sudan’s external debt amounts to 60 billion dollars, as the country is in urgent need for financial help to reform its economy.