South Sudan Finance minister clarifies on $200m loan for businessmen

March 16, 2022 (JUBA) – South Sudan’s Finance minister, Agak Achuil Lual has clarified on the $200 million loan earmarked for the country’s businessmen, saying the agreement was reached between the latter and commercial banks where they sought loans.

“That was not what we discussed and agreed with them [businessmen]. What we discussed and told them is not what the media is reporting. You ask them”, he told Sudan Tribune in an interview on Wednesday.

The minister said the businessmen sought guarantees for loans they wanted to acquire from commercial banks, which demanded for collaterals.

Lual made the clarification days after the chairperson of South Sudan Business Community, Ayii Duang Ayii said they reached a deal with the Finance ministry to mortgage assets for a $200 million Central Bank loan.

The agreement, he disclosed, would allow them use their fixed assets to receive loans in dollars or its equivalent in South Sudanese Pounds (SSP).

Ayii said the business community’s assets, estimated at about $1.5 billion, would be used to pay back the loan over a five year period.

“We requested the Ministry of Finance and the Central Bank to be guarantors. If we failed and squander the money, they will be the ones to take these houses and pay the money to those who funded us,” he said.

The loan, to be acquired from six commercial banks, would reportedly be used to support livestock, agricultural exports and imports in the country.

(ST)