Gov’t reveals it owes commercial banks almost $100 million in debts

JUBA – South Sudan government has revealed on Thursday that it owes commercial banks working in the country around $100 million in debts as country exert efforts to fight economic crisis imposed by COVID-19, corruption and drop in oil prices – the main revenue for the country – at the international market.

The country’s minister of trade and industry Kuol Athian told lawmakers in an extraordinary sitting on Thursday in Juba that the central bank cannot control commercial banks because the government owes them almost $100 million.

Athian who also revealed that there is mistrust between the government and the commercial banks said the government haven’t implemented the measures needed to regulate the circulation of foreign currency because they sometimes threaten to take teh government to court over the debts.

“According to what they have told me, the commercial banks say they need money from the central bank – Equity needs about $47 million; KCB, $16 million; Ecobank, $15 million; Cooperative Bank, $10 million dollars; Ivory Ban, $4 million,” he said.

“So, with these debts, the government cannot regulate them because they sometime threaten the government to take us to court and that is why we cannot regulate the circulation of the dollar in the black market,” he added.

In contradiction, South Sudan vice-president for governance cluster James Wani Igga said following a meeting with president Kiir on Thursday evening that the country’s economic situation was improving as government was able to generate revenues from non-oil sources.

“There is an improvement in the country’s revenue collection methods. The concerned financial institutions must re-double their efforts in generating more revenue into the economy,” Igga told SSBC on Thursday.