The Sudanese signed a comprehensive peace agreement in early January 2005 and negotiations are underway to resolve the disturbances in Darfur.
The authorities are calling for the removal of the remaining sanctions on Sudan to allow the country a fast take-off.
Permanent peace and the ongoing broad based high economic growth will help Sudan reach the MDGs and reduce poverty if adequate external assistance, including debt relief is delivered in a timely manner.
The authorities are grateful for the generous donor pledges made in Oslo and urge for timely disbursement of these resources.
Performance under the 2004 SMP and the program for 2005 meet the strength of a RAP and performance since 2002 has been of similar strength.
Payments to the Fund have exceeded those needed to stabilize arrears.
To meet immediate demands arising from the peace agreement, the humanitarian situation in Darfur and drought relief, wage increases and other important outlays have been postponed and payments to the Fund will remain at their level of 2004.
Due to lack of access to development financing, Sudan has been forced to contact non-concessional loans to finance growth enhancing investments.
Sudan’s debt is unsustainable. The net present value of debt is 850 percent of exports, far exceeding the 150 percent under the HIPC Initiative.
Sudan has met all the conditions (policies and payments) of a RAP since 2002. The Fund should now move speedily to facilitate the clearance of Sudan’s arrears and allow the country to forgo RAP and move directly to PRGF and HIPC.
Debt relief and access to humanitarian and development assistance is critical to sustain peace in Sudan.