Sudan began talks this week with the International Monetary Fund
(IMF) on a non-funded programme that could pave the way for
international financial support, Finance Minister Ibrahim Elbadawi
said on Sunday.
Khartoum is in desperate need of financial help to reorganise its
economy. Inflation has been running at nearly 100% and the currency
tumbling as the government prints money to subsidise bread, fuel and
electricity.
The talks mark a thaw in Sudan’s relationship with the IMF. Until now
it has been unable to tap the IMF or the World Bank for support
because it is still listed by the United States as a state sponsor of
terrorism and has $1.3 billion of IMF arrears.
The U.S. indicated after President Omar al-Bashir was removed from
power in April 2019 that it was willing to work to remove Sudan from
the terrorism list.
“This week Sudan began negotiations … to agree on a Staff-Monitored
Programme that seeks to open doors for international financing &
investment in major development, infrastructure, peacebuilding & job
creation projects for youth,” Elbadawi said on Twitter on Sunday.
Sudanese officials recently said they expect Khartoum will be removed
from the terror list soon.
Sudan has debts of around $62 billion, including arrears of around $3
billion to international financial institutions, Elbadawi said in
October.
IMF communications director Gerry Rice said on Thursday that Sudan had
requested talks, which he expected to be completed by around the
fourth week of June.
The programme would be “a way for Sudan to show a track record of good
policy implementation,” Rice said. “By showing such a track record, it
can help Sudan toward clearing its arrears to the IMF, which in turn,
and this is the key, can unlock financing from other sources as well.