IMF says it is monitoring developments in Sudan after coup

WASHINGTON (AFP) – The International Monetary Fund (IMF) said on Tuesday (Oct 26) that it was following events in Sudan after a military coup that saw the prime minister deposed and major donors suspend aid.

“It is premature to comment on the implications of recent events in Sudan, but we are monitoring the developments carefully,” a spokesman for the Washington-based crisis lender told Agence France-Presse.

The coup comes just over two years into a delicate power-sharing arrangement between the military and civilians after the army’s ouster during enormous street protests in April 2019 against longtime autocrat Omar al-Bashir.

The military on Monday seized Prime Minister Abdalla Hamdok and briefly detained him, but on Tuesday, his office said he had been brought home along with his wife.

Sudan had been emerging from decades of stringent United States sanctions after Washington removed the country from its state sponsor of terrorism blacklist in December 2020, eliminating a major hurdle to much-needed aid and financial investment.

The World Bank and IMF in June granted Sudan debt relief under the Heavily Indebted Poor Countries Initiative, cutting the nation’s debt in half to about US$28 billion (S$38 billion), and the institutions have offered additional help if economic reforms continue.

However, following the coup, the US, a key backer of the transition, strongly condemned the military’s actions and suspended hundreds of millions of dollars in aid.

The European Union late on Tuesday threatened serious consequences for Sudan’s rulers, including to financial support.

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