The International Monetary Fund is working to provide 112 million United States dollars as financial support to South Sudan under its Rapid Credit Facility program.
IMF board will approve the emergency funding next week to support the government’s fight against food insecurity.
In a press release, the Fund said it has reached staff-level agreement with South Sudan on the third review of its program to provide financial loans to low-income countries.
“This emergency financing under the new Food Shock Window will help South Sudan address food insecurity, support social spending, and boost international reserves,” the IMF said in a statement on Tuesday.
The emergency financing will help South Sudan address food insecurity, support social spending, and boost international reserves.
The program monitoring with board involvement will support economic policies aimed at maintaining macroeconomic stability and debt sustainability.
According to the IMF, South Sudan’s request for emergency support is subject to approval by its management and the Executive Board in the coming weeks.
“Ahead of the Executive Board consideration of this request, the government of South Sudan is expected to implement several reforms to strengthen governance and transparency,” says the fund.
The agreement with South Sudan government was reached during the visit of IMF staff team, led by Niko Hobdari to South Sudan from November 7 to November 17, 2022.
Aid agencies say South Sudan is under extreme levels of food insecurity and malnutrition – making it one of the worst food insecurity emergencies in the world.
In 2020, IMF approved a 52.3-million dollar loan to help address South Sudan’s economic challenges.
IMF had provide a 225 million grant to the Bank of South Sudan 225 for economic reforms and to stabilize the exchange rate.