The United States has rescinded Sudan’s status as a sponsor of terrorism, representing a “fundamental change” in relations between the two nations.

The change in status opens up pathways for Sudan to receive international loans and improve economic development as the country transitions toward democracy.

“This achievement was made possible by the efforts of Sudan’s civilian-led transitional government to chart a bold new course away from the legacy of the Bashir regime and, in particular, to meet the statutory and policy criteria for rescission,” Secretary of State Mike Pompeo said in a statement.

Secretary of State Mike Pompeo speaks during a news conference at the State Department in Washington, Wednesday, Oct. 21, 2020. (Nicholas Kamm/Pool via AP)

Pompeo also cited the Sudanese calls for “freedom, peace, and justice.”

Sudan, which once hosted Osama bin Laden and other wanted militants, was designated a state sponsor of terrorism by the Clinton administration in 1993.

PENTAGON SAYS 'MAJORITY' OF US TROOPS LEAVING SOMALIA

President Trump announced in October that he planned to remove the designation, but he had to observe a 45-day period of congressional notification. His announcement came just days before the announcement of a historic peace deal between Sudan and Israel.

"This is one of the great days in the history of Sudan," Trump said at the time, calling the agreement a “HUGE win” for the U.S. and “for peace in the world.”

As part of the agreement to remove Sudan from the list, the nation agreed to pay $335 million to terror victims of the 1998 bombings of the U.S. embassies in Kenya and Tanzania.

CLICK HERE TO GET THE FOX NEWS APP

Congress is expected to act to restore Sudan’s sovereign immunity, which would effectively stop future compensation claims from being filed against it in U.S. courts.

Fox News' Bradford Betz contributed to this report.