Sudan receives $166 million loan from the Arab Monetary Fund

December 22, 2015 (ABU DHABI) – The Arab Monetary Fund (AMF) Tuesday has extended a $166 million loan to Sudan making the total amount of loans it granted to the east African nation $400 million.

In a press release extended to Sudan Tribune, the AMF said the loan would contribute to reducing the deficit in the balance of payments and support the economic reform program during 2016 and 2017.

In august 2014, the Sudanese government announced the implementation of the five-year program as an extension of the tripartite program.

It said the program aims to promote economic and financial stability and achieve comprehensive and sustainable growth rate through improving the macroeconomic environment.

According to the AMF, the reform program agreed upon with Sudan seeks to implement several policies and measures to improve the fiscal situation and promote the monetary policy besides enhancing the external balance and establishing the necessary infrastructure to accelerate development.

Sudan’s economy was hit hard since the southern part of the country declared independence in July 2011, taking with it about 75% of the country’s oil output.

However, the government succeeded in bringing inflation rate down from a high of 46.8% in July 2014 to 11.3% in August 2015 but ordinary citizens continue to complain from cost of living increases that impaired their access to basic commodities.

Also, the Sudanese pound has lost 100% of its value since South Sudan’s secession.
The exchange rate of the US dollar on the black market has reached 11.5 Sudanese pounds (SDG).

The official dollar exchange rate stated by the Central Bank of Sudan (CBoS) is around 6.1 SDG