March 26, 2021
The United States Treasury Friday said it has approved a bridge financing of nearly $1.15 billion to Sudan’s Civilian-Led Transitional Government to support the government’s reform efforts to stabilize its economy and secure debt relief through the Heavily Indebted Poor Countries program.
Underscoring the progress that the Sudanese transitional government has made since July 2020, the American government’s financial arm said “[it] commends [the] Sudan’s Civilian-Led Transitional Government for moving forward with reforms that will help restore economic stability, advance the country’s efforts to secure debt relief, and ultimately improve the economic prospects of its citizens.”
Treasury Secretary Janet L. Yellen also added that “Sudan’s Civilian-Led Transitional Government deserves credit for making challenging but necessary reforms to restore its social contract with the Sudanese people. The United States is pleased to support these efforts today by helping Sudan clear its arrears to the World Bank. It’s an action that will move Sudan one step closer to securing much needed-debt relief and help the nation reintegrate into the international financial community.”
The funds, which will help Sudan clear its arrears at the World Bank and will be at no cost to the U.S. taxpayers, is an important step in normalizing Sudan’s relationship with the international community as well as catalyze its efforts to advance debt relief under the HIPC program, laying the groundwork for sustainable, long-term economic growth for the benefit of the Sudanese people.
“The [Sudanese government] has implemented a robust economic reform program that underpins Sudan’s transition to democratic rule. In cooperation with the International Monetary Fund and the World Bank, Sudanese authorities have worked to strengthen governance, bolster central bank independence, improve the business climate, accelerate social support to struggling households, and put Sudan’s finances on a more sustainable footing. Treasury will continue to work with international partners to support Sudan’s reform agenda and efforts to secure debt relief in 2021,” the Treasury department said in a statement.