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The Transitional National Legislative Assembly (TNLA) on Tuesday directed the Ministries of Finance and Planning to put on hold any loans that require approval.
Public Accounts Committee Chairman Justin Joseph Marona told lawmakers during the Transition National Forum Report that this would restore trust in the country’s debt management system.
“It directed the Ministry of Finance and Planning to allow loans at the national and local levels to be submitted to parliament for approval in accordance with the provisions of the Public Financial Management and Accountability Act of 2011,” Marona said.
He added: “In this way, lenders can restore legal trust in our debt management system and credibility in the national trend of reform in personal financial management.”
Oliver Benjamin Murray, chairman of the parliamentary information and communications committee, said parliament had found that most of the loans were not being used effectively.
“But in most cases, these loans are not used productively. Instead of being invested, they are consumed, perhaps to pay salaries or other unnecessary services,” Sen said.
South Sudan faces a high risk of debt distress, with a debt-to-GDP ratio estimated at 34.5% in 2023, according to a new report by the African Development Bank Group (AfDB).
The current account balance will improve to a surplus of 7.0% of GDP in 2022/23, driven by a gradual rise in oil export revenues, the report said.
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