Sudan has settled its debts with the World Bank after nearly three decades, paving the way for the African country to access nearly $2 billion in grants from the International Development Association (IDA), the Bank said on Friday.

World Bank President David Malpass said the move marked a breakthrough for Sudan, putting it on the path to substantial debt relief, economic revival, and inclusive development.

Payment of Sudan's arrears was made possible through a $1.15 billion bridge loan from the U.S. government, Malpass said in a statement.

Sudan's finance minister Gibril Ibrahim said clearance of the arrears would enable the country to secure financing from the World Bank Group and other multilateral institutions and move forward with transformative development projects.

"We are thankful to the U.S. government for facilitating this clearance process, which also supports our drive towards more comprehensive debt relief," Ibrahim said.