Press Release No. 97/9

Press Release: IMF Executive Board Adopts Decision on Sudan

February 13, 1997

The Executive Board of the International Monetary Fund (IMF) unanimously adopted the following decision on Sudan:

"1. In accordance with Decision No. 11319-(96/75), adopted August 2, 1996, the Executive Board has considered further the Managing Director's complaint under Article XXVI, Section 2(c) dated April 8, 1994, which was communicated to the authorities of Sudan on May 17, 1994, setting out the facts on the basis of which it appeared to him that Sudan had persisted in its failure to fulfill its obligations under the Articles of Agreement after the expiration of a reasonable period following the decision on the suspension of Sudan's voting rights under Article XXVI, Section 2(b) on August 6, 1993.

2. The Executive Board, unanimously committed to the Third Amendment of the Articles, finds that Sudan has persisted in not fulfilling its obligations under the Articles of Agreement after the expiration of a reasonable period following the decision on suspension of Sudan's voting rights under Article XXVI, Section 2(b), and, therefore, it has been determined that there is a basis to recommend that, pursuant to Article XXVI, Section 2 of the Articles of Agreement, the Board of Governors require Sudan to withdraw from membership.

3. Nevertheless, given the recent payments made by Sudan, and the strong assurances given by the Sudanese authorities at Executive Board Meeting 97/8 on payments to the Fund and policy reinforcement, the Executive Board will not recommend compulsory withdrawal of Sudan if (i) Sudan makes all the [scheduled] payments..., (ii) by March 3, 1997, Sudan has agreed on a letter of intent embodying a program of economic and financial adjustment ¹ which the Executive Board decides by March 31, 1997 is of a quality that warrants monthly monitoring by the staff, and (iii), after adopting a program in accordance with (ii) above, Sudan implements the program satisfactorily in the judgement of the Executive Board.

4. If Sudan fails to meet any of these conditions, the Board will meet promptly, to review the situation and recommend compulsory withdrawal to the Board of Governors.

5. The decision will be reviewed not later than August 31, 1997, it being understood that the Board will review performance by Sudan on a monthly basis."

¹ The program referred to in this paragraph would be a set of policies negotiated between the Sudanese authorities and the IMF staff. Sudan is ineligible to use IMF financial resources, and the program would not involve any use of those resources.