The Board of Directors of the African Development Bank Group (ADB) has approved a proposal to purchase approximately US$ 413 million in arrears on Sudan’s loans to the institution.This is a major step that Sudan has just taken in its process of re-engagement with international financial institutions. Indeed, once the arrears are fully cleared, the sanctions against Khartoum will be lifted and a policy-based operation (PBO) will be provided to the country as part of the Bank’s full re-engagement. This will complement the Bank’s ongoing operations.
The UK will provide bridging funding to clear Sudan’s arrears to the African Development Fund, while Sweden has pledged grant funding of around US$ 4.2 million to cover the portion of Sudan’s burden for the operation, the Bank says in a press release sent to APA on Monday.
“With the additional financing flows expected from the arrears clearance, the Bank looks forward to a new era of fruitful cooperation with Sudan to realize the aspiration of its people for prosperity and sustainable development,” the AfDB Group Country Director for Sudan, Raubil Durowoju, was quoted as saying by the same source.
The clearance of arrears with international financial institutions, such as the AfDB, the World Bank and the International Monetary Fund is one of the prerequisites for Sudan under the Heavily Indebted Poor Countries Initiative.
This will also provide Sudan with fiscal space to embark on the path of sustainable socio-economic development and complement its efforts to advance its development agenda. The latter includes the consolidation of peace, the acceleration of poverty reduction, and the generation of essential financing for actions of transformation and development and inclusive growth.
The Bank Group’s current portfolio in Sudan includes 18 operations for a total commitment of approximately US$ 0.5 billion, covering operations in the sectors of agriculture, water and sanitation, social and energy, as well as support for multisectoral capacity building activities and the private sector.