South Sudan Seeks $2.5 Billion in Oil-Backed Loans. South Sudan’s petroleum ministry confirmed on Thursday that it has requested a total of $2.5 billion in oil-backed loans from two international companies operating in the country.
The requested amount surpasses the government’s annual budget, which is under $2 billion, and exceeds the roughly $2.2 billion in oil-backed loans the United Nations estimates South Sudan has received since gaining independence in 2011.
The ministry said it sent two letters requesting the loans late last month, but rejected what it described as defamatory commentary on social media about the requests.
“The requested funds were intended solely for official government purposes, not for personal or individual benefit,” the ministry said, adding that the requests were preliminary and that no funds have yet been transferred, Reuters reported.
Don’t Miss This:
UK, US, And South Sudan Emerge As Top Destinations For Kenyan Banks’ Cross-Border Cash Shipments
In an October 27 letter to ONGC Nile Ganga B.V., a local unit of India’s ONGC Videsh, which was published online and confirmed as genuine by the petroleum ministry, South Sudan requested an advance payment of $1 billion against crude oil entitlements controlled by the national oil and gas company.
The ministry also confirmed the authenticity of a letter sent on October 31 requesting $1.5 billion under the same conditions from China National Petroleum Corporation (CNPC).
In both cases, the ministry proposed repaying the loans within 54 months of disbursement.
ONGC Videsh, CNPC, and the state-owned Nile Petroleum Corporation did not immediately respond to emailed requests for comment.
The International Monetary Fund has expressed concerns about the impact of oil-backed loans on South Sudan’s public debt.
The United Nations has said that corruption has been a major factor driving repeated armed conflicts in South Sudan, including the 2013-2018 civil war, which claimed an estimated 400,000 lives.
U.N. investigators also reported in September that systematic looting of the country’s oil wealth by political elites has contributed to the ongoing humanitarian crisis in the impoverished nation.
Don’t Miss This:
Sudan’s Warring Factions Trade Blame Over Strike On Aid Convoy In Darfur
Image Credit: Africa Publicity
