The International Monetary Fund (IMF) will help Sudan to organize its economy so that it grows again. In a statement issued last week, the Fund states that Khartoum must adopt the Staff-Monitored Program (SMP), by which it will help the government of Sudan on economic reforms later this year. The partnership does not involve loans or guarantees from the IMF.
“Sudan’s economy has been facing major challenges since July 2011 secession of South Sudan, with low economic growth, high inflation largely driven by the financing of high fiscal deficits, a deterioration in external and fiscal accounts, and a persisting gap between the official and curb market exchange rates” the Fund statement said.
“Sudan’s external debt is high and largely in arrears, cutting off the country from access to most external financing sources. In particular, Sudan remains unable to access IMF resources because of its continued arrears to the Fund. А strong track record of maintaining macroeconomic stability and implementing reforms, together with a comprehensive arrears clearance strategy supported by development partners, will be essential for resolving Sudan’s large debt overhang.”
In a statement, the IMF said it will work in partnership with local authorities and monitor progress in the implementation of the economic program through “quantitative” targets and benchmarks. “Successful implementation of the SMP will signal to the international community the authorities’ commitment to macroeconomic reforms and in due time will help the authorities in the debt relief process,” said the statement.