South Sudan qualifies for IMF zero-rate loans

The International Monetary Fund said Monday that poor South Sudan had qualified for its concessional loans, as the country struggles to gain its economic footing a year after independence.

South Sudan joins 71 other countries which merit loans under the IMF’s Poverty Reduction and Growth Trust, which currently carry a zero interest rate.

“Adding South Sudan to the list of PRGT-eligible countries allows the authorities to request concessional financing from the IMF in support of their economic program,” the IMF said.

South Sudan joined the IMF in April and has been receiving technical support and policy advice from the Washington-based global lender since 2011.

The IMF is also coordinating with other donors to administer a $10 million, three-year trust fund for South Sudan that would help build the country’s human and institutional resources for managing the economy.

South Sudan broke away from Sudan and gained independence in July 2011, but has since been mired in violent conflict with the north as well as internal strife, hindering its ability to stabilize despite its oil wealth.

The cash-strapped government said last week it expects to restart oil production in December, almost one year after a row with Sudan forced a shutdown of oil productions.