Sudan: Staff-Monitored Program-Press Release; Staff Report; and Statement by the Executive Director for Sudan
IMF Staff Country Reports, October 23, 2020
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- Sudan: Staff-Monitored Program-Press Release; Staff Report; and Statement by the Executive Director for Sudan
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Bibliographic details
- Published: October 23, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513559803.002
Purpose of the Staff-Monitored Program (SMP)
- The transitional government has requested a Staff-Monitored Program (SMP) to:
- help address major macro imbalances,
- lay the groundwork for inclusive growth,
- establish a track record of sound policies that is a requirement for eventual HIPC debt relief.
Macroeconomic and humanitarian context
- Major challenges lie ahead.
- Economic contraction since 2018 is set to intensify sharply in 2020 as a result of the COVID-19 pandemic.
- Fiscal and external imbalances are large.
- Inflation is high and rising.
- The currency is overvalued, and competitiveness is weak.
- The humanitarian situation is dire with large numbers of internally displaced people and refugees.
Constraints on access to Fund financial assistance
- Sudan cannot access Fund financial assistance on account of:
- (i) arrears to the Fund,
- (ii) arrears to other IFIs and other creditors,
- (iii) unsustainably large external debt.
- Sudan remains on the U.S. state sponsors of terrorism list (SSTL), which effectively hinders progress toward HIPC debt relief.
Policy alignment, social tolerance, and donor support
- There is broad agreement between the authorities and staff about the key reform priorities.
- Public tolerance for painful reforms is fragile given prolonged economic hardship.
- Donor financial assistance has been well short of the amounts needed to facilitate gradual orderly adjustment.
Risk assessment
- Given the economic, fiscal, external, humanitarian, financing, and political constraints, risks to the SMP are high.
Source: Sudan: Staff-Monitored Program-Press Release; Staff Report; and Statement by the Executive Director for Sudan, October 23, 2020.
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