Press Release No. 12/274

Press Release: Statement at the Conclusion of an IMF Mission to Sudan

July 24, 2012

An International Monetary Fund (IMF) mission, led by Mr. Edward Gemayel, visited Sudan during July 15−23, 2012, to continue discussions for the 2012 Article IV Consultation that were started in May. The mission met with Minister of Finance Ali Mahmood Abdulrasool, Governor of the Central Bank Mohamed Khair Ahmed Al-Zubair, State Minister of Finance Megdi Yasin, Deputy Governor of the Central Bank Badreddin Mahmood Abbas, Under Secretary of Ministry of Finance Yousif AlHussein, and representatives of the private sector, civil society, diplomatic community, and development partners.

The discussions focused on recent policy measures taken by the Sudanese authorities in response to the economic challenges faced by the country as a result of South Sudan’s secession. At the end of the mission, Mr. Gemayel issued the following statement:

“The mission welcomes the difficult but important efforts made by the Sudanese authorities in recent weeks to address the domestic and external economic impact of South Sudan’s secession. The fiscal measures taken in the context of the revised 2012 Budget, which derives from the government’s Three-Year Emergency Program adopted in 2011, include important steps to raise non-oil revenue and consolidate expenditure while strengthening social safety nets. The implementation of these measures will contribute to restore fiscal sustainability over time. Equally important is the central bank’s reform of the exchange rate regime, which will gradually help restore external stability.

“Looking ahead, the mission underscores the need for continued policy reforms to ensure medium-term macroeconomic stability that would enable more inclusive economic growth, boost job creation and contribute to poverty reduction. Measures to protect the most vulnerable segment of the society amid the current difficult economic context warrant particular attention.

“The IMF’s Executive Board is expected to consider the report on the 2012 Article IV Consultation with Sudan in September 2012. The mission would like to thank the authorities for their cooperation and constructive dialogue.”