For Immediate Release
REF: SOUTH SUDAN RECEIVES USD 334 MILLION FROM THE IMF
South Sudan has been allocated USD 334 Million by the International Monetary Fund (IMF) as part of the general allocation of Special Drawing Rights (SDRs), approved by the IMF Board of Directors on 2nd August 2021. The allocation became effective yesterday Monday 23’d August 2021.
The new resources have come when South Sudan is implementing essential economic reforms, including monetary and far-reaching foreign exchange market reforms, which involved refraining from monetary financing of the deficit.
Utilization of the new resources will address the budget support and the economic impacts of the COVID-19 pandemic, the balance of payment, and reserves building.
Our current economic stabilization efforts have been supported by the significant recovery of oil prices and the two IMF disbursements under the Rapid Credit Facility in November 2020 and March 2021 for combined financing of US$225 million.
These efforts have made a positive impact by helping the country address the pandemic’s adverse effects, the exchange rate stabilization, declining inflation, and the government’s ability to reduce salary arrears substantially.
Commenting on this new development, the Governor of Bank of South Sudan, Hon. Dier Tong Ngor, stated that “the additional USD 334 million allocations by the IMF and the improving oil revenue will substantially boost the country’s foreign exchange reserves”. He further stressed that “the increase in reserves will help build external resilience and sustain the current reforms in the foreign exchange market. Building reserves, in turn, is expected to facilitate price stability and investment
flows going forward. It will also improve liquidity and gain enough policy space to battle the pandemic while mounting an inclusive recovery. As such, the allocation will contribute to the sustainability of the current economic and foreign exchange reforms”.
The Governor also reiterated commitment to utilizing these resources prudently and transparently. He confirmed that “the Ministry of Finance & Planning and the Bank of South Sudan will ensure adequate checks and balances and will provide special accounting and reporting on the utilization of the proceeds will be undertaken”. “We also remain committed to continuing on the path of economic reforms and that the budget currently, which has been passed by the Cabinet and will be soon sent to Parliament for approval, is based on realistic revenue projections and maintains the commitment of no monetary financing of the deficit” he concluded.
The Governor also confirmed “commitment to transparency, good governance, and accountability in the use and reporting of South Sudan’s SDR allocation”. Contacts with the IMF will continue to discuss the optimal use of the SDR allocation, including building international reserves and supporting our economic reforms and FX stabilization”.
Hon. Dier Tong Ngor
Bank of South Sudan