Sudan: Enhanced Heavily-Indebted Poor Countries Initiative-Preliminary Document

IMF Staff Country Reports, March 26, 2021

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Canonical URL: Sudan: Enhanced Heavily-Indebted Poor Countries Initiative-Preliminary Document

Publication date: March 26, 2021
Core objective: Implement an ambitious reform program to address major macroeconomic imbalances and support sustainable, inclusive growth.
Transitional government mandate: Carry out sweeping reforms to reverse decades of economic and social decline.
Transformational reform agenda focuses on:
- (i) achieving internal peace based on inclusion, regional equity, and justice;
- (ii) stabilizing the economy and correcting the large macroeconomic imbalances;
- (iii) providing a foundation for future rapid growth, development, and poverty reduction.

Peace agreement reached with almost all internal armed opposition groups in October 2020 to end 17 years of conflict.
On December 14, 2020, Sudan was officially removed from the United States State Sponsors of Terrorism List (SSTL), ending almost three decades of international isolation.
Political risks: Political contestation over power sharing arrangements remains acute; importance of seizing a still favourable political economy window to tackle macroeconomic imbalances.

The government has agreed to ambitious reforms and policy adjustments under:
- an International Monetary Fund (IMF) Staff Monitored Program (SMP) that meets the Upper Credit Tranche (UCT) conditionality standard; and
- an International Development Association (IDA) Development Policy Financing (DPF) operation.
External support is central to implementing stabilization and reform measures and to re-engaging with the international community.

Subject classifications: Arrears, Asset and liability management, Debt relief, External debt, International organization, Monetary policy, Poverty, Poverty reduction strategy, Public financial management (PFM)
Keywords: analysis in the staff report, Arrears, Debt relief, enhanced Heavily Indebted Poor Countries, Global, HIPC decision point, Point trigger, Poverty reduction strategy, staff recommendation, transition government