Africa-Press – South-Sudan. The Government of South Sudan has allocated $187 million for debt servicing in the 2025–2026 fiscal year, a move designed to restore sovereign credibility and protect the nation from international litigation.
The announcement was made by the Minister of Finance and Planning, Dr. Bak Barnaba Chol, during the formal presentation of the Draft National Budget, the Appropriation Bill, and the Finance Bill before the Transitional National Legislative Assembly (TNLA) on Tuesday, February 3.
Dr. Chol informed lawmakers that the $187 million allocation is a strategic priority intended to cover both principal and interest obligations. He described the move as essential for rebuilding international confidence in South Sudan’s financial standing.
“To restore sovereign credibility and reduce litigation exposure, the government has allocated USD 187 million for debt servicing in fiscal year 2025-2026, covering both principal and interest obligations,” Dr. Chol told the August House.
Labeling the proposal a “discipline-driven stabilization budget,” the Minister outlined a roadmap focused on restoring macroeconomic balance, strengthening institutions, and funding the upcoming electoral process.
The fiscal outlook for the year includes: debt servicing as SSP 842 billion, total revenue projected at 7 trillion South Sudanese Pounds (SSP), total expenditure projected at 8.58 trillion SSP, and fiscal Deficit: 1.58 trillion SSP.
Dr. Chol explained that this deficit will be managed through domestic means, grants, and concessional financing, staying consistent with ongoing public financial management reforms.
In a bid to curb inflation and stabilize the local currency, the Ministry is coordinating with the Bank of South Sudan to implement two exchange-rate reunification measures. These reforms aim to harmonize the market and lay a foundation for sustainable economic growth.
The Minister urged Members of Parliament to remain patient as the government navigates these complex reforms. “I urge all members of this august house to continue exercising tolerance as we continue the reform and the efforts to restore confidence in our financial sector,” Dr. Chol added.
The budget documents have now been formally submitted to the TNLA for deliberation and final approval.
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