(Ecofin Agency) - South Sudan will benefit from $52.3 million provided by the International Monetary Fund (IMF) to strengthen its response plan against the coronavirus pandemic. The information was announced on November 11 by the institution in an official statement.
This is the first assistance program backed by IMF financial support to the country since it joined the IMF in 2012. It aims to help Juba mitigate the consequences of the coronavirus that has had a major impact on an already sluggish economy.
The new funds will be used to finance South Sudan's urgent balance of payments needs. They will also help contain the fiscal impact of the shock caused by the pandemic while providing essential fiscal space to maintain poverty-reducing and growth-enhancing spending.
“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 an urgent balance of payments and fiscal financing needs. The authorities’ efforts in addressing 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 closing the external financing gap and easing the adjustment burden,” said Mitsuhiro Furusawa (pictured), IMF Deputy MD.
For FY2020-21, IMF expects South Sudan to have negative growth of -3.6%.
Moutiou Adjibi Nourou