## IMF Board Endorses Staff-Monitored Program for Sudan

_IMF News, September 24, 2020_

## Source details

**Canonical URL:** [IMF Board Endorses Staff-Monitored Program for Sudan](https://www.imf.org/en/news/articles/2020/09/24/pr20298-sudan-imf-board-endorses-staff-monitored-program)

## Other formats

- [Markdown version](/en/news/articles/2020/09/24/pr20298-sudan-imf-board-endorses-staff-monitored-program/index.md)
- [Structured JSON version](/en/news/articles/2020/09/24/pr20298-sudan-imf-board-endorses-staff-monitored-program/index.json)
- [Bundle manifest](/en/news/articles/2020/09/24/pr20298-sudan-imf-board-endorses-staff-monitored-program/bundle-manifest.json)

## Bibliographic details
- Published: September 24, 2020

---

### Executive action and program scope
- Press Release No. 20/298; Date: September 23, 2020.
- The Executive Board endorsed Sudan’s Staff-Monitored Program (SMP), which was approved by the Managing Director on September 9, 2020, as meeting the Upper Credit Tranche Conditionality (UCT) standard.
- Duration: 12-month SMP covering July 1, 2020 – June 30, 2021.
- SMP nature: An informal agreement between country authorities and Fund staff to monitor the implementation of the authorities’ economic program. SMPs do not entail financial assistance or endorsement by the IMF Executive Board.

### Macroeconomic context and challenges
- The COVID-19 pandemic has compounded Sudan’s difficulties.
- Fiscal and external imbalances are described as large.
- Inflation: 167 percent in August and rising.
- Competitiveness: characterized as weak.
- Humanitarian situation: dire, with large numbers of internally displaced people and refugees.
- External debt: high with longstanding arrears that severely limit access to external borrowing.
- Sudan remains unable to access IMF resources because of its continued arrears to the Fund.

### Program objectives and key policy measures
- Primary objective: establish a strong track record of policy and reform implementation—a key requirement for eventual debt relief.
- The SMP will support the government’s home-grown program of reforms aimed at:
  - stabilizing the economy,
  - improving competitiveness,
  - strengthening governance.
- Fiscal measures and public spending:
  - Continue the process of eliminating large fuel subsidies to make space for greater social spending, including for the Sudan Family Support Program and health spending.
  - Broaden the tax base, including through the rationalization of tax exemptions.
  - The resulting fiscal adjustment is key to reducing monetization and inflation.
- Exchange rate policy:
  - Authorities intend to take measures toward a unified market-clearing exchange rate.
- Governance and competitiveness:
  - Removal of economic distortions together with measures to improve governance will reduce opportunities for corruption and help strengthen the business environment and competitiveness.

### Requirements for success and external support
- A key element to the success of the program is sufficient donor funding to support the population through the difficult transition to a well-functioning market-based economy.
- Strong coordination among donors and IFIs on technical assistance to Sudan will be important.
- Addressing Sudan’s high debt overhang requires:
  - A strong track record of macroeconomic performance and implementation of reforms,
  - A comprehensive strategy of arrears clearance and debt relief supported by Sudan’s development partners.

### Official statement
- Statement made by Ms. Antoinette Sayeh, Deputy Managing Director and Acting Chair, following the Executive Board discussion.

### Media contact
- IMF Communications Department, MEDIA RELATIONS.
- PRESS OFFICER: Nadya Saber
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- Twitter: @IMFSpokesperson

*IMF Press Release No. 20/298 — "IMF Board Endorses Staff-Monitored Program for Sudan" (September 23, 2020).*

---


## References

- [https://www.imf.org/en/about/senior-officials/bios/antoinette-monsio-sayeh](https://www.imf.org/en/about/senior-officials/bios/antoinette-monsio-sayeh)
- [Sudan and the IMF](http://www.imf.org/external/country/SDN/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2020/09/24/pr20298-sudan-imf-board-endorses-staff-monitored-program_