· In a bid to explore resources to fund its projects, Sudan proposes to sell its Special Drawing Rights (SDR) to the International Monetary Fund
Sudan’s Finance Minister Gibril Ibrahim was in Washington last week to participate in the annual meetings of the Boards of Governors of the International Monetary Fund, the World Bank Group, central bank governors, and finance ministers. The Minister explored ways to provide Sudan with the necessary resources to fund its programmes.
In a bid to explore resources to fund its projects, Sudan proposes to sell its Special Drawing Rights (SDR) to the International Monetary Fund (IMF) according to Minister Gibril Ibrahim. As part of a loan of 2.4 billion dollars approved by the IMF on June 29, 2021, Sudan has the equivalent of one billion dollars of SDR, after paying 1.4 billion dollars to pay off its debts to the Fund. The loan is part of the framework of international efforts to support the civilian government to become eligible to benefit from the Heavily indebted poor countries (HIPC) initiative after 30 years of international isolation. The minister said that the IMF officials agreed to convert to dollars a part of the Special Drawing Rights that Sudan got last year, which amounts to 650 million SDR to use it in financing vital sectors in the country. The proposal of the transitional civilian government to use this money as a deposit to access significant loans to rehabilitate the Sudanese economy at the end of the debt relief process. After the military coup in October 2021, that overthrew the civilian government, Sudan’s economic crisis worsened as the international community and financial institutions suspended their support.
The IMF team is expected to visit Sudan to resume technical assistance to Sudan soon. Special windows to finance food security and climate change are also being explored.
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