Via IMF (Den Internationale Valutafond)

IMF Executive Board Approves US$52.3 Million Disbursement to South Sudan to Address the COVID-19 Pandemic







November 11, 2020











  • The pandemic and oil price shock created severe economic disruption, leading to a sharp decline in South Sudan’s growth and reversing some early gains from political stability.
  • To address the urgent balance of payments needs, the IMF approved US$52.3 million emergency assistance to South Sudan’s under the Rapid Credit Facility. This is the first lending operation with South Sudan since it joined the Fund in 2012.
  • The authorities are committed to transparency and accountability to ensure that the RCF resources are used appropriately.

Washington, DC
:
The Executive Board of the International Monetary Fund (IMF) today approved
a disbursement of SDR 36.9 million (about US$52.3 million or 15 percent of
its SDR quota) to South Sudan under the

Rapid Credit Facility (RCF)

. This is the first Fund supported financial assistance provided to South
Sudan since it joined the Fund in 2012.

The disbursement will help finance South Sudan’s urgent balance of payments
needs, contain the fiscal impact of the shock and will provide critical
fiscal space to maintain poverty-reducing and growth-enhancing spending.

Prior to the COVID-19 pandemic, South Sudan had achieved significant
progress due to improved political stability and an uptick in global oil
prices. Economic growth rebounded, inflation declined, and the exchange
rate stabilized. However, the pandemic and oil price shock created severe
economic disruption, leading to deterioration in the fiscal and external
balances, and a sharp decline in growth, reversing some early gains from
political stability. South Sudan economy is projected to contract 3.6
percent in FY20/21, about 10 percentage points below the pre-pandemic
baseline.

The authorities have committed to public financial management reforms,
transparency and accountability to ensure that the RCF resources are used
appropriately and for their intended purpose.

Following the Executive Board discussion, Mr. Mitsuhiro Furusawa, Deputy
Managing Director and Acting Chair, issued the following statement:

“The COVID-19 pandemic has severely affected South Sudan and reversed early
gains from political stability. The health and economic impact of the
pandemic, coupled with the decline in oil prices, led to a collapse of
revenues and have created urgent balance of payments and fiscal financing
needs. The authorities’ efforts to address the human and economic effects
of the pandemic are appropriate and have helped limit its spread.
Additional financing from the international community remains critical to
close the external financing gap and ease the adjustment burden.

“The authorities are committed to pursuing macroeconomic stability by
implementing fiscal consolidation, limiting the use of monetary financing
of the deficit and containing reliance on non-concessional debt. They
intend to safeguard poverty-reducing and growth-enhancing spending.

“The authorities are implementing public financial management reforms to
enhance the budget process and improve governance. They have established a
Public Financial Management Oversight Committee and are preparing a reform
strategy. With technical assistance, they are strengthening budget and cash
management systems. The authorities are committed to full transparency and
accountability of crisis-related spending, including publishing information
on procurement and ex-post audits.”

More information

IMF Lending Tracker (emergency financing request approved by the IMF
Executive Board)


https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker

IMF Executive Board calendar


https://www.imf.org/external/NP/SEC/bc/eng/index.aspx


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Gediminas Vilkas

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson








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