Sudan - Arrears Clearance Proposal

Sudan’s arrears clearance proposal marks a major milestone in the country’s re-engagement with international financial institutions and the global economy. The operation involves : (i) One Hundred and Fifty-One Million, Four Hundred Thousand Units of Accounts (UA 151.4 million) from TSF Pillar II to directly offset Sudan ADB arrears to the Bank; and (ii) One Hundred and Forty Four Million Units of Accounts (UA 144 million) from TSF Pillar II to TSF Pillar I to be utilized for the Policy-Based Operation for Bank Group’s full reengagement with Sudan. The PBO will be submitted to the Board separately for consideration. The proposal enables the Bank to proceed with clearing Sudan’s arrears with the African Development Bank Group, with the support of the United Kingdom and Sweden. The U.K will provide bridge financing to clear Sudan’s arrears to the African Development Fund, while Sweden has committed to providing grant financing of about $4.2 million to meet Sudan’s burden-share for the operation. Upon full clearance of the arrears to the Bank group, sanctions on Sudan will be lifted and a Policy-Based Operation (PBO) will be provided to the country as part of the Bank’s full re-engagement, to complement on-going Bank operations.