Removed From The US Version Of List Of Supporting Countries For Terrorism, IMF Says Sudan Can Now Handle Debt

Scribbles on freedom and peace in Sudan (Source: Antara)

JAKARTA - The United States (US) will remove Sudan from the list of countries deemed to support terrorism. This step is related to the normalization of relations between Sudan and Israel. The International Monetary Fund (IMF) welcomes this move.

Friday, October 23, the IMF said removing Sudan from the list would make it easier for the country to handle debt.

The IMF and the World Bank launched the Heavily Indebted Poor Countries (HIPC) initiative in 1996 to ensure that no poor country faces an insurmountable debt burden.

However, the HIPC process is very long and will require significant reform by Sudan.

"We are increasingly hopeful of seeing official signs from the US government to Congress on the goal of removing Sudan from the list. Removing Sudan from the list will remove one of the hurdles in HIPC debt relief," said Carol Baker, head of the IMF Mission to Sudan, in statement.

US President Donald Trump this week announced his decision to remove Sudan from a US list of supporters of terrorism. The announcement was made by Trump a few days ago before the Sudanese-Israeli normalization ceremony was held.

Sudan, which is bound by a foreign debt of US $ 60 billion (around Rp.878.4 trillion), urgently needs financial assistance to rebuild its economy.

The country's inflation hit 167 percent in August 2020, and the currency's value fell as the government printed money to provide subsidies on bread, fuel and electricity.

In September, the IMF backed a plan to monitor a 12-month program of economic reforms implemented by Sudan's new transitional government that seeks to build international confidence for debt relief.

Sudan's high external debt and long arrears continue to limit the country's access to foreign loans, including from the IMF, which has already owed a total of US $ 1.3 billion or around Rp.19 trillion.