AfDB approves proposal to clear Sudan's $413m arrears
The African Development Bank has approved a proposal for the clearance of about $413 million in arrears on loans owed by Sudan, marking a major milestone in the country’s re-engagement with international financial institutions and the global economy.
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 UK 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.
Upon full clearance of the arrears to the bank group, sanctions on Sudan will be lifted and a Policy-Based Operation will be provided to the country as part of the bank’s full re-engagement, to complement on-going Bank operations. Clearing of arrears with international financial institutions such as the African Development Bank, the World Bank and the International Monetary Fund, is one of the preconditions for Sudan under the Highly Indebted Poor Countries Initiative.
