Republic of the Sudan
Presidency of the Cabinet
Khartoum — Sudan clears its arrears to the World Bank, regaining access to Gains Access to $2 Billion in New World Bank Financing for the first time in almost 30 years
Today, the Republic of the Sudan and the World Bank finalized the arrangements to clear Sudan’s arrears to the World Bank through a grant from the World Bank and bridge financing facility from the Government of the United States, marking the Sudanese people’s first major victory on the path towards debt relief.
This event marks the resumption of normal operations between Sudan and the World Bank Group, including the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA), in almost 30 years.
The arrear clearance immediately allows Sudan access to concessional financing and other services from the World Bank Group including grants in a total amount of $635 million made available immediately to the Government of Sudan, of which $215 million in direct budget support and $420 million in additional financing for the family support program (Thammarat).
In addition, it is expected that over the course of the next two years total grants of $2 billion will be made available to Sudan to finance its national development priorities, such as infrastructure, health, education, agriculture, and other productive sectors. The discussions to program these resources will commence in the next two weeks.
The clearance of these arrears to the World Bank represents one of the major benefits resulting from the economic reforms being implemented by the transitional government.
This victory belongs to the Sudanese people who have shouldered the burden of the economic reforms, which have been made difficult by the COVID-19 pandemic.
It is also a significant achievement for Sudan’s Transitional Government as it implements its economic program to realize economic stability, equitable growth, opportunity, and jobs for all Sudanese people.
This major milestone brings Sudan significantly closer towards the Highly Indebted Poor Countries (HIPC) initiative decision point.
The Government of Sudan expresses its appreciation to its international partners for their support to the Sudanese people, particularly the World Bank Group and the US Government for their pivotal role in facilitating this agreement.