Washington: The Republic of Sudan has liquidated its overdue debt to the International Development Association (IDA), enabling it to fully re-partner with the World Bank after nearly three decades, paving the way for the country to raise nearly $ 2 billion from the International Development Association (IDA). Grants to fight poverty and achieve sustainable economic recovery. By paying its arrears, Sudan has also taken an important step in obtaining comprehensive external debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative.
“This is a breakthrough at a time when Sudan needs the world’s help to support its development progress. The measures that have been taken so far, including the settlement of arrears and the unification of the exchange rate, will put Sudan on the path of great facilitation.” David Malpass, President of the World Bank Group said. Debt, economic recovery and general development. “I am grateful to the United States government for its generosity in facilitating the liquidation of late payments. I congratulate the Government of Sudan on its commitment to reform, and I look forward to opportunities for further support from the World Bank Group for the Sudanese people.”
The International Development Association (IDA) is the World Bank’s fund to help the poorest countries. This backlog of work was repaid through a $ 1.15 billion bridge loan from the US government. IDA supports Sudan’s reform agenda through a development policy process that includes renewed engagement and reform. The reforms aim to support Sudan’s economic growth and poverty reduction program, make the Sudanese economy more competitive, increase transparency, increase investment, create jobs, and improve social protection.
Dr. said. “Now that these arrears are settled, we are looking forward to obtaining financing from the World Bank Group and other multilateral institutions to boost our economy and reach all parts of Sudan with transformational development projects.” Gabriel Ibrahim, Sudanese Finance Minister. And the economy. Schedule. “We are grateful to the United States government for facilitating the approval process, which also supports our efforts for more comprehensive debt relief.”
Once the arrears are settled, Sudan has unlimited access to regular financing from the World Bank Group, including project financing under the International Development Association (IDA), private sector debt and equity investments through the International Finance Corporation (IFC), and political risk insurance. . Provided by the multilateral investment guarantee. MIGA Agency to Facilitate Foreign Direct Investment.
“Sudan today has one opportunity in every generation to set itself on the path of economic and social renewal,” said Hafez Ghanem, World Bank Vice President for Eastern and Southern Africa. “I thank our international partners who have worked with us to bring Sudan to this important stage, and I look forward to opportunities to continue supporting the World Bank Group to the Sudanese people.”
To maximize aid to Sudan, the World Bank has provided grants to pay arrears of $ 410 million to mitigate the impact of economic reforms through the Sudan Family Support Program and to facilitate Sudan’s renewed participation. This funding has been supplemented with $ 410 million from other donors. The program aims to transfer funds to 80% of Sudanese families, or nearly 32 million citizens, to mitigate the impact of short-term economic shocks. The program began on February 24, 2021.
The International Development Association (IDA) is one of the world’s largest funding sources for fighting extreme poverty in the world’s poorest countries. IDA provides zero or low interest loans and grants to countries for projects and programs that enhance economic growth, build resilience, and improve the lives of poor people around the world. Since 1960, IDA has provided nearly $ 422 billion in investments in 114 countries. As a subsidiary of the World Bank Group, IDA brings together global expertise with an exclusive focus on reducing poverty and achieving prosperity in the world’s poorest countries. Read more online: IDA.worldbank.org. # IDAworks
The Sudan Family Support Program (SFSP) is supported by several development partners through the Sudan Transition and Recovery Support Multiple Trust Fund (STARS), which includes Canada, the European Union, Finland, France, Germany, Ireland, Italy and Saudi Arabia. Arabia, the Netherlands, Norway, the Peacebuilding Fund, Sweden, and the United Kingdom. Together, these donors are working to match World Bank grant support for arrears release to a total SFSP support of $ 820 million.