In a news brief issued on August 31, the IMF announced that Sudan has committed since February 1997 to a schedule of payments to the IMF and has made progress in implementing macroeconomic and structural policies. In view of this, as well as the prospects for continued cooperation with the IMF, the IMF’s Executive Board lifted on August 27, 1999, its declaration of noncooperation from Sudan, which had been in place since September 14, 1990. Additionally, the Board decided that it could consider lifting the suspension of Sudan’s voting and related rights following satisfactory performance regarding economic policies and payments to the IMF during an evaluation period of approximately 12 months from the date of the Board decision.
The Board’s decision is the first step in a process of deescalation of the remedial measures that were applied earlier to Sudan. The deescalation process is designed to encourage members with protracted arrears to the IMF to establish a solid record of policy performance and payments to the IMF. Ultimately, the objective is full clearance of arrears and the ability to regain access to IMF financial resources.
After the Executive Board discussion, IMF Deputy Managing Director Shigemitsu Sugisaki made the following statement: “Sudan has established an encouraging track record of economic performance and payments to the IMF under the 1997 and 1998 staff-monitored programs and has laid a solid foundation for continued good performance under the 1999-2001 medium-term staff-monitored program. However, in view of the structural weaknesses in the Sudanese economy, it is critical that the authorities remain vigilant and keep the program on track, in terms of both macroeconomic and structural policies. Payments to the IMF and other creditors need to be made as committed by Sudan. This would allow the IMF to give consideration to further deescalation of the remedial measures and, eventually, to the possibility of a Rights Accumulation Program.”
The full text of News Brief 99/52 is also available on the IMF’s website: http://www.imf.org.