Sudan: Article IV Consultation: Staff Report; Debt Sustainability Analysis; Staff Statement; Public Information Notice on the Executive Board Discussion; Statement by the Executive Director
IMF Staff Country Reports, August 2, 2010
Source details
- Canonical URL
- Sudan: Article IV Consultation: Staff Report; Debt Sustainability Analysis; Staff Statement; Public Information Notice on the Executive Board Discussion; Statement by the Executive Director
Other formats
Bibliographic details
- Published: August 2, 2010
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455204168.002
Summary
- Sudan has been adversely affected by the global crisis through a sharp decline in oil receipts.
- Executive Directors welcomed the Staff-Monitored Program (SMP), which aimed to reduce the fiscal deficit, tighten monetary stance, and increase exchange rate flexibility.
- Directors urged the authorities to maintain prudent macroeconomic policies and to accelerate fiscal and financial sector as well as structural reforms.
- Directors agreed that progress on debt relief under HIPC for Sudan is essential to remove the debt overhang and regain access to concessional financing for development and social projects.
Key findings and thematic areas
- Fiscal policy and fiscal stance:
- SMP aimed to reduce the fiscal deficit.
- Directors emphasized maintaining prudent macroeconomic policies.
- Monetary policy:
- SMP aimed to tighten monetary stance.
- Exchange rate policy:
- SMP aimed to increase exchange rate flexibility.
- Debt and debt sustainability:
- Progress on debt relief under HIPC is essential to remove the debt overhang.
- Restoring access to concessional financing for development and social projects depends on HIPC progress.
- Structural and financial sector reforms:
- Directors urged acceleration of fiscal and financial sector reforms and broader structural reforms.
- External shock:
- The global crisis led to a sharp decline in oil receipts, adversely affecting Sudan.
Policy recommendations and agreed actions
- Maintain prudent macroeconomic policies.
- Implement the Staff-Monitored Program priorities:
- Reduce the fiscal deficit.
- Tighten monetary stance.
- Increase exchange rate flexibility.
- Accelerate fiscal and financial sector reforms.
- Advance structural reforms to support economic stability and recovery.
- Pursue progress on HIPC debt relief to remove the debt overhang and regain access to concessional financing for development and social projects.