News Brief: IMF Lifts Declaration of Noncooperation from Sudan
IMF News, August 31, 1999
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- Published: August 31, 1999
Executive Board decision
- The IMF's Executive Board lifted on August 27, 1999 its declaration of noncooperation from Sudan, which had been in place since September 14, 1990.
- The Board decided that it could consider lifting the suspension of Sudan's voting and related rights following satisfactory performance regarding economic policies and payments to the IMF during an evaluation period of approximately 12 months from the date of the Board decision.
Preconditions and recent performance
- Sudan has committed since February 1997 to a schedule of payments to the IMF, and has made progress in implementing macroeconomic and structural policies.
- Sudan established an encouraging track record of economic performance and payments to the IMF under the 1997 and 1998 staff monitored programs.
- Sudan has laid a solid foundation for continued good performance under the 1999-2001 medium-term staff-monitored program.
De-escalation process and objectives
- The Board's decision is the first step in a process of de-escalation of the remedial measures that were applied earlier to Sudan.
- The de-escalation process is designed to encourage members with protracted arrears to the IMF to establish a solid record of policy performance and payments to the IMF.
- The ultimate objective is full clearance of arrears and the ability to regain access to IMF financial resources.
- The Board may consider further de-escalation of remedial measures, and, eventually, the possibility of a Rights Accumulation Program, contingent on continued performance and payments.
IMF leadership statement (Shigemitsu Sugisaki, Deputy Managing Director)
- "Sudan has established an encouraging track record of economic performance and payments to the IMF under the 1997 and 1998 staff monitored programs and has laid a solid foundation for continued good performance under the 1999-2001 medium-term staff-monitored program."
- "However, in view of the structural weaknesses in the Sudanese economy, it is critical that the authorities remain vigilant and keep the program on track, both in terms of macroeconomic and structural policies."
- "Payments to the IMF and other creditors need to be made as committed by Sudan. This would allow the IMF to give consideration to further de-escalation of the remedial measures, and, eventually, to the possibility of a Rights Accumulation Program."
Source: News Brief: IMF Lifts Declaration of Noncooperation from Sudan — August 31, 1999.