The African Development Bank Group (AfDB) has cleared about $413 million in arrears on loans owed by Sudan. This follows the approval of the proposal by the Boards of Directors. This thus enables the country to have access to new financing.
The clearance of Sudan’s arrears was aided by the United Kingdom’s bridge financing of $208 million, Sweden’s grant financing of about $4.2 million, and the Republic of Ireland’s commitment to provide EUR150,000 towards Sudan’s future debt service.
This bridge financing unlocks important additional programming to help Sudan’s development. It is also another step towards the country’s economic recovery and transition to democracy. I commend the work of Sudan’s government and AfDB to make this happen.UK Secretary of State for Foreign, Commonwealth and Development Affairs, Dominic Raab.
Consequently, AfDB has lifted sanctions on Sudan and is providing a policy-based operation to the country as part of the AfDB’s re-engagement with Sudan to complement its ongoing operations.
Clearing arrears with international financial institutions is one of the preconditions for Sudan under the Highly Indebted Poor Countries (HIPC) Initiative, which is paramount for clearing other debt owed to the Paris and Non-Paris Club creditors.
The Bank Group’s current portfolio in Sudan comprises 19 operations for a total commitment of about $600 million, spreading across sectors like agriculture, water and sanitation, social and energy and the private sector.