The recent major appointments linked to South Sudan’s economic management come at a critical time for the reform process, as South Sudan prepares to exit a staff-monitored program and hopes to access a new loan in the coming months. The Troika stresses that a faster pace is needed in the implementation of public financial management reforms. In this regard, the Troika stresses the importance of continuing and further strengthening the ongoing reforms, which will demonstrate the government’s commitment to the reform process and build confidence with international partners.
South Sudan has made significant progress over the past year and a half on public financial management reforms, including prudent monetary policy, successful exchange rate reform, and steps towards sounder cash management. public. These measures have already benefited the people of South Sudan through a more stable exchange rate and slower inflation. We urge the government of South Sudan and those now responsible for leading the economic recovery to continue these reforms, in line with the commitments of R-ARCSS and South Sudan under the IMF staff surveillance program.
The Troika stresses that maintaining compliance with the moratorium on new non-concessional debt, including the non-issuance of letters of guarantee, will spare ordinary citizens the burden of increasing taxes or cutting public spending in the country. ‘to come up. The Troika further emphasizes that a sound monetary policy is essential to maintain low inflation and a stable exchange rate, both of which will help protect the people of South Sudan from rising prices: this means that the Bank of South Sudan should refrain from any monetary financing of the budget deficit. The Troika also stresses the need for the budget to be debated and adopted by the TNLA, and stresses that a fully functioning cash management committee is essential for sound spending in line with budget allocations.
The Troika looks forward to continuing to support the government of South Sudan, including those recently appointed, to improve transparency and accountability for the benefit of all South Sudanese. To achieve this, we stress that fiscal data – including on oil and non-oil revenue – should be published on the website of the Ministry of Finance and Planning regularly and without delay. Information should also be made public on any outstanding balances owed to Sudan under the Transitional Financing Agreement and any debt that Sudan may now owe to South Sudan through the oil it receives in kind on a daily basis. The Troika plans a full audit of the second tranche of the IMF’s FCR loan, as well as further progress in anti-money laundering reforms in line with the FATF action plan.
The South Sudanese economy remains fragile and the gains that have been made could quickly be reversed, to the detriment of its people. The Troika reiterates its commitment to a peaceful and prosperous South Sudan, in which the population benefits from public services, supported by transparent and accountable public financial management. To this end, the Troika looks forward to working with the new appointees to advance and deepen public financial management reforms.
Distributed by APO Group on behalf of the United States Embassy in South Sudan.