Despite its inability to repay loans on time, South Sudan’s budget requires more loans, according to Agok Makor Kur, the Deputy Minister for Finance and Economic Planning.
Last week, the deputy minister of finance and planning told a specialized committee on finance and planning that South Sudan should seek loans from lenders to fund government activities in the country.
The panel invited the minister of finance and planning, the commissioner-general of the National Revenue Authority, and the Ministry of Petroleum to provide an update on the money collected from oil and non-oil revenue, as well as how it is spent.
“Because of the war, we are not able to pay the lenders on time. For that reason, the key MPs went to court because we were not able to give them. Now we are negotiating with the team together with the ministry of justice, and we solved it, now we are in a good position,” Makur told the committee.
In the fiscal year 2021/2022, the budget booklet depicted that the government’s long-term debt management objective will be to increase satisfactory levels of financing at cost or risk.
In addition, the budget “will pursue strategies to ensure that the national public debt is maintained at levels over the medium to long term”.
According to the Minister of Finance and Planning, Agak Achuil, the government plans to borrow both domestic and external money to run its operations. It will also “intensify efforts to consolidate the legal framework governing the contraction of debt and its management.”