So. Sudan: IMF advises govt. to stop selling oil advances in loans with Chinese companies, says oil revenues should be used for peacebuilding
Author: Hereward Holland, BusinessDay, Published on: 24 March 2019
"IMF urges South Sudan to halt dubious oil-backed loans", 19 March 2019.
South Sudan should stop selling expensive and opaque oil advances, the IMF said, because loan resettlements are hindering spending vital for the implementation of a peace deal...The government took out loans from several Chinese companies during the war, offering to repay them with future oil proceeds...“On the management of oil revenues, the mission urges the authorities to immediately stop contracting oil advances that are expensive and nontransparent,” said Jan Mikkelsen from the IMF, who led a mission to Juba...The IMF said spending in the remaining part of the 2018/2019 fiscal year will be constrained by large repayments of oil revenue advances. “With a tight resource envelope, the authorities should strictly prioritise core peace-related spending and payment of civil servant salaries.”...