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South Sudan receives $334 million from IMF

The International Monetary Fund (IMF) has given $334 million to South Sudan. This is the second time the financial institution is allocating funds to the country.

“The money would support the country’s financial year budget and address the economic impacts of COVID-19”. said Dier Tong Ngor, South Sudan’s Central Bank Governor.

In April this year, IMF granted South Sudan a $174m loan to stabilize the foreign exchange.

The country has been allocated $334 million by the IMF as part of the general allocation of Special Drawing Rapid which was approved by the IMF Board of Directors on 2nd August 2021. The transaction became effective on Monday, 23rd August.

“The resources have come when South Sudan is implementing essential economic reforms, including monetary and far-reaching foreign exchange market reforms which involve refraining financing of the deficit,” Central Bank governor, Dier Tong said in a press statement issued on Tuesday.

Mr Dier added that the loan will improve South Sudan’s foreign reserves and help to build external resilience and sustain current reforms in the exchange market.

“I confirm commitment to transparency, good governance and accountability in the use and reporting of South Sudan’s Special Drawing Rapid allocation,” he said.

In late March, the International Monetary Fund (IMF) gave the South Sudan government an economic stabilisation loan of $174.2 million to boost the economy.

After receiving the loan, the Central Bank in April announced weekly auctioning of an additional $3 million to private banks and forex in an attempt to stabilise the economy. Since December 2020, the Bank of South Sudan said it has auctioned over $30 million to the market.

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