By Faith Nyasuguta
The International Monetary Fund (IMF) has given South Sudan a $334 million loan to boost its slumping economy, the nation’s Central Bank has revealed.
“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,” Dier Tong, the Central Bank governor said in a Tuesday press statement.
“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.”
According to Dier, the loan will boost 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 March, the IMF gave the South Sudan government an economic stabilization loan of $174.2 million to grow the economy.
Days after receiving the loan, the Central Bank announced weekly auctioning of some $3 million more to private banks and forex as it tried to stabilize the economy.
So far, the bank has auctioned over $30 million to the market.