Arab Monetary Fund to release $305m for Sudan

November 14, 2019 (KHARTOUM) – The Arab Monetary Fund (AMF) will provide Sudan with $305 million, including loans, trade facilities, capacity building and technical assistance.

Last March, Sudan which has been facing hard currency crisis since 2011 agreed with the regional lender to help address the balance of payment with this loan and trade facilities.

Head of the AMF delegation Ahmed Abu Bakr met on Thursday with the Sudanese officials at the ministry of finance to activate the grant agreement which signed on 18 March nearly three weeks before the collapse of the al-Bashir regime.

In a statement released by the finance ministry, Abu Bakr said that the visit aimed at activating the agreements signed with Sudan.

He further announced that they will release during this month a $110 million compensatory loan to enable Sudan to cover the shortfall in hard currency.

Another ordinary loan of $45 million will be paid in the first quarter of 2020. Also, the agreement includes Sudan’s support of $ 80 million to be released through 2020, in addition to $ 70 million for trade loans.

Sudan will host a meeting of Friends of Sudan group to discuss ways to fund its 2020 budget as the country is experiencing an endemic financial crisis.

Furthermore, the East African country cannot undertake serious economic reforms with the support of international financial institutions due to the US remaining sanctions related to the terror list.

In turn, Sudanese Finance Minister Ibrahim Ahmed al-Badawi confirmed the government’s keenness to enhance economic cooperation with the Fund

He promised to address all obstacles that hinder cooperation between the two sides, alluding to Sudan’s non-paid subscription in the fund.

(ST)