The government of South Sudan will be receiving a relief fund of 112.7 million from the International Monetary Fund in response to the economic challenges haunting the nation.
The relief fund would primarily be allocated to help tackle food insecurity, support social spending and boost the country’s diminishing foreign reserves.
This report is coming after South Sudanese officials and the IMF staff reached a staff-level agreement for an emergency financing through the fund’s new Food Shock Window of the Rapid Credit Facility (RCF) combined with a programme monitoring with board involvement (PMB).
However, the IMF has final say, and whether the relief fund would be granted is subject to the decision of IMF board members in the coming weeks.
The conversation surrounding this grant was led by Niko Hobdari, the head of the IMF team that visited South Sudan.
He noted that releasing the grant seemed very likely as the country’s finance ministry has experienced some level of success in stabilizing the country’s exchange rate.
“The IMF mission is encouraged by the actions taken by the Ministry of Finance and Planning and the Bank of South Sudan since August 2022 to restore fiscal discipline and rein in money growth, which has stabilized the exchange rate in recent months,” Hobdari said.
“South Sudan’s request for emergency support is subject to approval by IMF management and the executive board in the coming weeks. Ahead of the executive board consideration of this request, the authorities will implement several reforms to strengthen governance and transparency.” The IMF said.
The IMF also added; “Going forward, it will be critical for the authorities to continue prudent fiscal and monetary policies and to consolidate and build on the first steps taken under the SMP to improve public financial management.”