IMF secures pledges worth $1.42bn for Sudan debt relief

IMF secures pledges worth $1.42bn for Sudan debt relief
Sudan may owe as much as $60 billion to external creditors. (AP)
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Updated 23 June 2021
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IMF secures pledges worth $1.42bn for Sudan debt relief

IMF secures pledges worth $1.42bn for Sudan debt relief
  • The pledges will clear Sudan's debts with the IMF
  • Sudan received debt relief from the Paris Club group of creditors in May

WASHINGTON: The International Monetary Fund (IMF) has secured sufficient pledges to clear Sudan’s debt with the lender after 101 member countries promised 992 million Special Drawing Rights (SDR), equivalent to $1.42 billion.

“Today’s financing milestone marks a historic opportunity for Sudan to move toward comprehensive debt relief from the IMF and the international community,” Managing Director Kristalina Georgieva said in a statement on Tuesday. “The Fund will continue to support Sudan in its recovery from a long period of instability and economic hardship.”

Sudan’s total external debt amounted to $50 billion at the end of 2019, according to the IMF. The country is still working with its creditors to reconcile its debt up to the end of last year, and officials say the final total could be as high as $60 billion, Reuters reported last month.

Sudan owes the Paris Club creditors group about $19 billion, mainly to France, Austria and the US.

In May, several countries agreed to write off Sudan’s debts during the Paris Conference to support Sudan, including $5 billion from France, which also approved a loan of $1.5 billion.