The Board of Directors of the African Development Bank (AfDB) has approved a proposal for the clearance of about $413 million in arrears on loans owed by Sudan to the institution.

Sudan, per the proposal signed on Friday, would clear its arrears with the support of the United Kingdom and Sweden.

The U.K will provide bridge financing to clear the 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.

Country Manager of AfDB, Raubil Durowoju, indicated that the arrears clearance would allow the African Development Bank to fully re-engage with Sudan, opening up new financing opportunities for projects and programs that add further support to ongoing Bank operations.

“With the expected additional financing flows following the arrears clearance, the Bank is looking forward to a new era of fruitful cooperation with Sudan to realize its peoples’ aspiration for prosperity and sustainable development,” he said.

Sanctions on Sudan are expected to be lifted upon full clearance of the arrears to the Bank.

Also, 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.

“The arrears clearance will also provide the fiscal space for Sudan to embark on a road to sustainable socio-economic development and will complement its efforts to advance its development agenda, which includes consolidating peace, accelerating poverty reduction and generating much-needed financing for transformative and inclusive growth,” portions of AFDB’s statement read.

The Bank Group’s current portfolio in Sudan comprises 18 operations for a total commitment of about $5 billion, covering operations in the agriculture, water and sanitation, social and energy sectors. As well as support for multi-sector capacity building activities and the private sector.