The International Monetary Fund (IMF) has granted South Sudan a $334 million loan to improve its ailing economy, the country’s Central Bank has said.
“The country has been allocated $334 million by the IMF as part of the general allocation of Special Drawing Rapid approved by the IMF Board of Directors on 2nd August 2021. The allocation became effective yesterday [Monday] 23rd of 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 said the loan will improve South Sudan’s foreign reserves and this “will help 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 IMF gave 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.