IMF praises Sudan for reforms, arrears payments
WASHINGTON, Aug 31 (Reuters) - The International Monetary Fund lifted one set of sanctions against Sudan on Tuesday, praising Sudanese efforts to cut its massive arrears to the fund and urging the African country to press on with reforms.
A statement released after a meeting of the IMF executive board said the IMF had lifted a nine-year old declaration that Sudan was not cooperating with the IMF.
``Sudan has established an encouraging track record of economic performance and payments to the IMF...and has laid a solid foundation for continued good performance,' IMF Deputy Managing Director Shigemitsu Sugisaki said in a statement.
``However, in view of the structural weaknesses in the Sudanese economy, it is critical that the authorities remain vigilant...both in terms of macroeconomic and structural policies. Payments to the IMF and other creditors need to be made as committed by Sudan.'
Sudan came within a whisker of being kicked out of the IMF two years ago for non-payments of debts built up since the 1970s. But the government reached a repayments deal in 1997 and IMF figures show a steep rise in repayments in the last two years.
Sudan, which has arrears to the IMF of $1.3 billion, repaid some $58 million last year and has paid some $25 billion so far this year, IMF figures show.
The IMF, in its annual review of the Sudanese economy, in June urged Sudan to push ahead with economic reforms, raising the prospect that this, coupled with further payments on arrears, could increase the chances of new loans in the future.
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