This archive report was first published on 25 August 2021.
South Sudan's economy has been struggling, but a recent loan from the International Monetary Fund (IMF) may bring some relief. The country's Central Bank has announced that the IMF has granted a $334 million loan to improve the economy.
According to the Central Bank, the loan is part of the general allocation of Special Drawing Rights approved by the IMF Board of Directors on 2 August 2021. The allocation became effective on 23 August 2021.
Central Bank governor Dier Tong said in a press statement that the resources have come at a critical time when South Sudan is implementing essential economic reforms. These reforms include monetary and far-reaching foreign exchange market reforms, which involve refraining from financing the deficit.
Mr Dier said the loan will improve South Sudan's foreign reserves, which will help build external resilience and sustain current reforms in the exchange market. He also confirmed the country's commitment to transparency, good governance, and accountability in the use and reporting of South Sudan's Special Drawing Rights allocation.
South Sudan has received other loans from the IMF in the past. In late March, the IMF gave the government an economic stabilisation loan of $174.2 million to boost the economy. The Central Bank has also auctioned over $30 million to the market since December 2020.
