WASHINGTON (Reuters) - The U.S. Treasury said on Tuesday it welcomed Sudan’s clearance of about $1.4 billion in arrears to the International Monetary Fund, paving the way for the first phase of debt relief under the Heavily Indebted Poor Countries initiative. Treasury said in a statement that it committed to contribute up to $120 million in grant resources to fund IMF debt relief for Sudan in the first phase under HIPC. The Treasury provided bridge financing of about $1.15 billion in March to help Sudan clear its arrears at the World Bank. U.S. Treasury Secretary Janet Yellen said that Sudanese authorities were committed to implement challenging but necessary economic reforms as the country transitions to democratic rule, including unifying the exchange rate and strengthening governance and transparency. “The U.S. is proud to have been an early advocate for Sudan to normalize ties to the international financial institutions and helping it to secure debt relief,” Yellen said in a statement. “These steps will unlock much-needed financing and will help build the foundation for poverty reduction, inclusive development, and economic growth.” Reporting by David Lawder, Editing by Rosalba O’Brien Our Standards: The Thomson Reuters Trust Principles.