According to Reuters, the International Money Fund’s executive board has decided that Sudan has reached the decision point for the Highly Indebted Poor Countries (HIPC) initative, as stated by a Sudanese official on Monday.
As per the report, Sudan reaching the decision point for the HIPC initative indicates that the country can begin receiving relief on “its more than $50 billion in debt”.
The Reuters report mentioned that an IMF official state that, after a quarter of a century of the HIPC debt relief program launching, “Sudan is the penultimate economy to come through the process, and by far the largest case in absolute terms.”
The decision point confirmation – as per the report – indicates that a gateway to interim relief for Sudan’s debt has been cleared.
In order for Sudan to get a comprehensive and final debt relief, the country must meet what is known as a completion point, which many predict Sudan can hit within three years.
What This Means
Reaching decision point, as attributed to an IMF official quoted in the report, signifies that a three-year extended credit facility to provide direct financing is expected to be granted to Sudan by the IMF.
In return, Khartoum is expected to continue enacting the stipulated IMF and World Bank economic reforms package that is a prerequisite to Sudan reaching the “completion” point mentioned in the report.
The reforms enacted so far have driven the ire of the Sudanese public and have put the Sudanese government in a tough, confrontational position with the people.
The government’s decision to repeal fuel subsidies earlier this month caused a wave of protests and saw Khartoum and neighboring areas witness a noticeable rise in the number of lootings and muggings.
Analyst Jonas Horner –quoted for the Reuters report— stressed on the need for the Sudanese government to properly communicate to the Sudanese public the debt relief process.
“It’s imperative that [the government] communicate properly to the population the sequencing and arc on this so people don’t look up and just see the pain.”