Managing Director Georgieva's Opening Remarks at the Sudan Conference

IMF News, May 17, 2021

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Sudan has made sustained progress under the IMF Staff Monitored Program and looks set to establish a 6-month track record of satisfactory performance.
The Sudanese authorities have unified the exchange rate.
Authorities cut unaffordable and regressive subsidies, freeing-up important resources for social spending.
Key laws and regulations to boost governance and the business climate have been approved.
Growth is expected to turn positive in 2021.
The macroeconomic situation remains challenging: inflation remains very high and the external position is weak.

The government has produced a comprehensive three-year poverty reduction strategy; implementation is already underway.
Example: the Sudan Family Support Program has already provided support to 80,000 households.

Sudan cleared its arrears with the World Bank and the African Development Bank with bridge financing from the United States and the United Kingdom.
With help from the IMF and the World Bank, Sudan has made significant progress in reconciling debt numbers with creditors.
There is strong momentum to clear Sudan's arrears to the IMF and finance the IMF’s share of HIPC debt relief. Sudan has been the country the longest in arrears to the Fund and with the largest amount.

On May 10, the Executive Board of the IMF approved a financing plan of about $1.4 billion to mobilize the necessary resources.
The plan relies on a broad effort of IMF member countries.
France committed to provide bridge financing for this operation.
Two specific requirements to complete the plan:
- first, IMF member countries to convert their informal pledges into formal commitments; and,
- second, securing additional cash grants to fill a residual financing gap of $36 million.
Deadline pressures and timing:
- It is urgent to complete this crucial piece of the puzzle by June 30, as planned.
- Meeting this deadline would allow Sudan to get full benefit of the new SDR allocation that the Fund membership will formally consider soon.
- Managing Director Georgieva urged IMF members to send a formal response by June 14 and noted that she sent letters to all IMF members last week.
- She thanked the countries, including fourteen low-income countries, that have already responded to her letter.

Mobilize timely and broad international support to deliver debt relief and financing needed for Sudan’s reintegration and economic stabilization.
Convert informal pledges into formal commitments promptly.
Secure additional cash grants to cover the $36 million residual financing gap.
Meet the June 30 deadline to enable Sudan to benefit from the upcoming SDR allocation.

Managing Director Georgieva's Opening Remarks at the Sudan Conference's Plenary Session, May 17, 2021.