Sudan to sell Special Drawing Rights at IMF, says finance minister

23 October 2022 (Khartoum) – Finance Minister Jibril Ibrahim announced that Sudan’s Special Drawing Rights (SDR) will be transferred to the International Monetary Fund (IMF) because the Government of Sudan does not have sufficient resources to fund the programme. ) announced plans to sell to

Sudan holds $1 billion worth of SDRs, part of a $2.4 billion loan approved by the IMF on 29 June 2021.

The loan was agreed within the framework of an international effort to help civilian governments qualify for the benefits of the Heavily Indebted Poor Countries (HIPC) initiative after 30 years of international isolation. .

After returning to Khartoum, Ibrahim spoke on state-run Sudan TV on Saturday about his participation in the annual meeting of the International Monetary Fund, World Bank Group, central bank governors and finance ministers. Washington, DC, October 10th through he 16th.

He said he has discussed with financial institutions how to provide his ministry with the resources it needs to fund the country’s agricultural and vital sectors.

IMF staff have resumed technical assistance to Sudan and a delegation is expected to arrive in the country soon, the minister said. He also said he had received a pledge to renew the period granted by the International Monetary Fund to reach the point of completion of debt relief for Sudan.

“We have also identified new avenues to obtain loans, including a special window to fund food security. The second window is related to climate change programs,” he said.

“These windows have nothing to do with debt forgiveness,” he stressed.

He added that IMF officials have agreed to sell part of Sudan’s SDR.

They “agreed to convert SDR 650 million, part of the Special Drawing Rights acquired by Sudan last year, into dollars and use it to fund key sectors of the country,” he added. rice field.

The minister did not specify the amount of SDRs converted to $1 billion. The Interim Civilian Government planned to use this money as a deposit to qualify for a large loan to rebuild the Sudan economy at the end of the debt relief process.

The military coup d’état that occurred in October 2021 halted support from the international community and financial institutions calling for the restoration of civilian rule, adversely affecting the economic situation.

A Sudanese economist contacted by the Sudan Tribune denied that the international community would approve such an operation. They added that the sale of her SDR in Sudan would solve Sudan’s economic crisis.

“The finance minister’s speech shows his desire to sell the rights of Sudan to several countries and use those funds to help support a collapsing economy,” said a university economics professor. al-Tijani Mustafa told the Sudan Tribune on Sunday.

Mustafa noted that Ibrahim is having trouble getting funds to support the 2023 budget.

For his part, economic expert Mohamed Alnayer told the Sudan Tribune on Sunday. The money Sudan may get from her SDR will not solve the economic crisis.

(ST)