Sudan: Selected Issues

IMF Staff Country Reports, December 11, 2017

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Recommendation: Launch a public information campaign as early as possible following a decision to phase out subsidies.
Campaign design elements:
- Wide-ranging consultations with all stakeholders.
- Inform the public about the high costs and unequal distribution of the subsidy benefits.
Mitigation measure: Use cash transfers to mitigate the impact of fuel subsidy removal on the lowest income groups.
Cost estimate: In the case of the removal of subsidies on fuel products, it is estimated that the cost of compensating the lowest income groups could be achieved at a cost of less than 1 percent of GDP a year.

Historical impact: Two decades of economic sanctions led to the exit of most Correspondent Banking Relationships (CBRs) from Sudan, and weighed heavily on trade, investment, growth, and humanitarian relief.
Recent development: In 2017, the United States revoked trade and financial sanctions, while sanctions imposed by the UN, and other countries, including the EU, remain applicable.

Subject areas: Anti-money laundering and combating the financing of terrorism (AML/CFT), Banking, Correspondent banking, Crime, Energy subsidies, Expenditure, Financial services, National accounts, Personal income.
Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), bank, cash grant, Correspondent banking, CR, Energy subsidies, Global, IMF GDP data, income group, income loss, ISCR, Mena bank, nominal GDP series, Personal income, Real GDP growth, real GDP series, respondent bank host, Sudan.