April 23, 2021 (KHARTOUM) – The African Development Bank (AfDB) announced on Friday that it has approved a plan aimed at clearing Sudan’s $413 million debt arrears.
“The proposal enables the Bank to proceed with clearing Sudan’s arrears with the African Development Bank Group, with the support of the United Kingdom and Sweden,” the AfDB said in a press release.
“The U.K will provide bridge financing to clear Sudan’s arrears to the African Development Fund, while Sweden has committed to providing grant financing of about $4.2 million to meet Sudan’s burden-share for the operation”.
Raubil Durowoju, AfDB Group’s Country Manager for Sudan said that the arrears clearance would allow the African Development Bank to fully re-engage with Sudan, opening up new financing opportunities for projects and programs that add further support to ongoing Bank operations.
“With the expected additional financing flows following the arrears clearance, the Bank is looking forward to a new era of fruitful cooperation with Sudan to realize its peoples’ aspiration for prosperity and sustainable development,” Durowoju said.
Last month the United States provided a $1.15 billion bridge loan to clear Sudan’s arrears with the World Bank.
France also announced this week that it intends to provide a $1.5 billion bridge loan to clear Sudan’s arrears to the International Monetary Fund (IMF).
Sudan needs to clear its debt arrears with international financial institutions in order to qualify for the Highly Indebted Poor Countries (HIPC) initiative.
It hopes that by June it will reach the ’decision point’ which is the first step in HIPC process.
An economic conference will convene in Paris next month to discuss spurring investments in Sudan and steps towards debt relief.
It is expected to witness the attendance of more than 25 countries and financial institutions.
Source: Sudan Tribune