Troika Statement on Public Financial Management Reforms

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Recent major appointments related to South Sudan’s economic management come at a critical time for the reform process, as South Sudan prepares to exit from a staff-monitored program and hopes to access a new ready 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 trust with international partners.

South Sudan has made significant progress over the past year and a half in public financial management reforms, including prudent monetary policy, successful foreign exchange reform and steps towards sounder public treasury. 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 currently tasked with leading the economic recovery to pursue these reforms, in line with R-ARCSS and South Sudan’s commitments under the IMF staff monitoring program.

The Troika stresses that continued compliance with the moratorium on taking on new non-concessional debt, including the non-issuance of letters of guarantee, will spare ordinary citizens the burden of higher taxes or cuts in public spending at the future. The Troika further stresses that a sound monetary policy is essential to maintain low inflation and a stable exchange rate, two elements that will help protect the people of South Sudan against rising prices: this means that the Bank of Sudan the South must 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 emphasizes that a fully functioning cash management committee is essential for sound spending in line with budget allocations.

The Troika looks forward to providing continued support to the Government of South Sudan, including those recently appointed, to enhance transparency and accountability for the benefit of all South Sudanese. To achieve this, we emphasize that fiscal data – including oil and non-oil revenue – should be published regularly and without delay on the Ministry of Finance and Planning website. Information should also be made public on any outstanding balance due to Sudan under the Transitional Financing Agreement and any debt that Sudan may now owe to South Sudan from the oil it receives in kind each day. . The Troika plans a full and comprehensive audit of the second tranche of the RCF loan from the IMF, as well as further progress in anti-money laundering reforms in accordance with the FATF Action Plan.

The South Sudanese economy remains fragile and the gains that have been made could be quickly reversed, at great cost to its people. The Troika reiterates its commitment to a peaceful and prosperous South Sudan, where people enjoy public services, underpinned 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.

© Press release 2021

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