South Sudan uses IMF loan to pay salaries

Hon. Dier Tong governor of Bank of South Sudan addressing journalists on 1st April 2021 (credited Lieth Nyak)

The governor of Central banks of South Sudan said civil servant salaries would be paid in the International Monetary Fund’s loan of $174.2 million. 

Banks made an official announcement on Thursday, specifying half-loan budget shall be used for salaries arrears, and half of the money will be used to stabilize the exchange rate and market price.

Governor of Bank of South Sudan Dier Tong Ngor says the ministry of finance will soon pay salaries arrears in any agreed time. However, the ministry of finance is yet to arrange a salary payment schedule.

According to the banks, $3million will also be auctioned to the eligible commercial banks every week. The amount that will be injected into the market is additional to $2million auctioned to the forex bureau.

He clarified the load aims to strengthen its monetary policy framework and correct distortions in the foreign exchange market. 

Central banks in 2021 will target a base money growth of about 10% and will disaggregate it quarterly and monthly to stabilize the exchange rate and market price.

“The primary objectives for us in the coming few months are to unified the official rate with a market rate that is ultimate objectives. And whatever step we are taking here are contributing to the primary objectives,” Tong reiterated.

Banks explained officials continue to be published separately by the banks for transactions between the government ministries, agencies, and BOSS. 

Its monetary policy is to facilitate the implementation of its reserve money target framework, increasing the financial instrument’s capacity that includes banks’ bills in the form of deposits.

According to World Banks’ review, the youngest nation was branded over economic mismanagement with an undisbursed balance of $44.27 million (30.5%).

On November 11, 2020, International Monetary Fund (IMF) approved a disbursement of SDR 36.9 million (about US$52.3 million to South Sudan under the Rapid Credit Facility (RCF).

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