June 29, 2021 — The United States Department of the Treasury(USDT) welcomes Sudan’s commitment to clear an arrear of $1.4 billion US Dollar on Tuesday to the International Monetary Fund(IMF).
According to the USDT, this will give Sudan a chance to enter the first phase of debts relief under the Heavily Indebted Poor Countries(HIPC) initiative.
“The U.S. Department of the Treasury welcomes today’s announcement from the International Monetary Fund (IMF) that Sudan has successfully cleared roughly $1.4 billion in arrears to the IMF and commends Sudan’s civilian-led transitional government for reaching the first phase of debt relief under the Heavily Indebted Poor Countries (HIPC) initiative” Part of the statement released by the U.S. Treasury Department of the Treasury.
The national treasury of the federal government of the United States said in a statement seen by Nyamilepedia editorial team that US will contribute up to $120 million in grant resources to fund IMF debt relief for Sudan under its HIPC.
According to the U.S. Treasury Secretary Janet Yellen, Sudan has accepted to implement tight economic reforms and for their country to transition to democratic rule that will commit to unifying exchange rate and strengthen transparency, accountability and good governance.
“Today’s milestone is a testament to the sustained commitment of Sudanese authorities to implement challenging but necessary economic reforms amidst the country’s transition to democratic rule. These reforms include unifying the exchange rate and strengthening governance and transparency.” U.S. Treasury Secretary Janet Yellen stated.
The United States Treasury Secretary Janet L. Yellen emphasize that this is a historic moment for Sudan and its people.
“This is a historic moment for Sudan and its people,” said Secretary of the Treasury Janet L. Yellen.
“The U.S. is proud to have been an early advocate for Sudan to normalize ties to the international financial institutions and helping it to secure debt relief. These steps will unlock much-needed financing and will help build the foundation for poverty reduction, inclusive development, and economic growth. All Sudanese can take pride in this achievement.” She added.
The Treasury Department said U.S. has played a critical role in supporting Sudan’s path to HIPC debt relief, in recognition of the important work the Government of Sudan has undertaken to restore economic stability.
The Treasury provided same-day bridge financing of approximately $1.15 billion in March to help Sudan clear its arrears at the World Bank, at no cost to U.S. taxpayers, and co-hosted a roundtable with the Department of State to encourage Sudan’s bilateral creditors to advance debt relief efforts.
Coincidentally, this comes at a time Sudanese are protesting in Khartoum to mark the end of al-Bashir era but at the same time shunting “Hamdok Must Go” in disapproval of the transitional government.
Sudan has been undergoing a critical phase in its history marked by numerous protests and shaky peace deals that aim to bring all parties on board.
So far progress remains slow but the transitional government hope to advance the country into a new era of economics, political and religious freedom.