Juba to borrow funds from oil firms
Reports have South Sudan going to oil firms for a loan for the coming financial year. The government plans to borrow about 3 billion pounds from oil companies to help cover repayments on domestic loans and previous oil advances, Juba said in a budget document.
This is not the first time that Juba has turned to oil companies operating within its borders for a bit of cash since fighting between the government and rebels damaged some of its oilfields. Oil production revenues are the country’s main source of income.
South Sudan, for the upcoming fiscal year which started July 1, anticipates revenues of 11.553 billion pounds.
“In order to offset the negative impact these repayments will have on our budget financing next financial year, we intend to borrow a further 3 billion pounds from the oil companies,” Juba’s Finance Minister Aggrey Tisa Sabuni said in the speech. He went on to say that this borrowing was “in effect rolling our obligation over until such a time as our budget is on a more sustainable financial footing.”
The budget document detailed previous borrowing from companies, saying that as of June 25 it still owed CNPC $256 million and trading firm Trafigura $78 million. Sabuni did not name the oil companies which would be approached.
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- Unpaid Debt A comprehensive overview of the role of the Lundin Consortium in the oil war. ECOS calls upon the Swedish, Austrian and Malaysian governments to investigate whether, as a matter of international law, Lundin, OMV and Petronas 'were complicit in the commission of war crimes and crimes against humanity by others during the period 1997-2003.’ In response, the Swedish Public Prosecutor for International crimes opened a criminal investigation into ‘links between Sweden and the reported crimes’.
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