This DSA has been jointly prepared by the Fund and World Bank staff and in collaboration with the Sudanese authorities.
Resolving Sudan’s debt overhang remains a high priority for the government. The authorities believe that debt relief under the HIPC Initiative and the MDRI will play a crucial part in helping Sudan to normalize its relations with creditors and assume a path to achieving sustainable development goals. This DSA does not address HIPC eligibility. Sudan is potentially eligible for HIPC and MDRI debt relief. However, determining whether or not it qualifies for HIPC debt relief will require a HIPC-specific analysis that will be carried on at an appropriate time in the dialogue with Sudan.
The CPIA ranks Sudan as a poor performer, with a 2004–06 average score of 2.6. The policy-dependent debt burden thresholds for countries in this category are: (a) NPV of debt-to-GDP ratio of 30 percent; (b) NPV of debt-to-export ratio of 100 percent; (c) NPV of debt-to-revenue ratio of 200 percent; (d) debt service-to-export ratio of 15 percent; and (e) debt service-to-revenue ratio of 25 percent.