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Economic Analysts Question South Sudan's Large Loans

Viola Elias

   JUBA , SOUTH SUDAN - South Sudan has secured $88 million in loans from
   the Africa Export-Import Bank (Afreximbank) after receiving cabinet
   approval, but local economic analysts say the hefty loans won't solve
   the country's serious economic problems.

   Information minister Michael Makuei told reporters following an
   extraordinary cabinet meeting that the council of ministers agreed to
   borrow more money so the government could settle all its internal
   outstanding debts.

   "The Afreximbank in the last meeting approved a loan of $25 million.
   This time the bank has decided to increase the amount, and it also
   approved that they will give us an additional sum of $63 million for
   the same pandemic trade impact mitigation," said Makuei.

   The government considers the money a soft loan, saying it will be paid
   back using the country's oil revenue, according to Makuei. South Sudan
   relies on oil production for about 99% of its revenue.

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