JUBA, Nov. 22 (Xinhua) -- The International Monetary Fund (IMF) and South Sudan have reached a staff-level agreement for the release of about 112.7 million U.S. dollars in emergency financing, the lender said on Tuesday.
The IMF said the emergency financing under the new Food Shock Window will help South Sudan address food insecurity, support social spending, and boost international reserves.
"The combination of continued localized conflict, four consecutive years of severe flooding, and the rising price of staple commodities from Russia's war in Ukraine has increased the number of people experiencing severe food insecurity to an estimated 8.3 million in 2022 (over two-thirds of the population)," the IMF said in a statement.
It said South Sudan authorities have committed to collaborate with trusted development partners to channel 20 million dollars of the Rapid Credit Facility (RCF) disbursement to make use of their existing systems to provide immediate humanitarian assistance to help address food insecurity.
The IMF mission which visited South Sudan from Nov.7-17 said significant reforms have been introduced since the start of the Staff-Monitored Program in March 2021, such as the unification of the official and parallel exchange rates.
The lender was encouraged by the actions taken by the Ministry of Finance and Planning and the Bank of South Sudan since August to restore fiscal discipline and rein in money growth, which has stabilized the exchange rate in recent months.
"Going forward, it will be critical for the authorities to continue prudent fiscal and monetary policies and to consolidate and build on the first steps taken under the SMP to improve public financial management," the IMF said. ■