Minister Says Oil Money Is For Loan Repayment, No Salaries South Sudan government on Wednesday said it cannot pay salaries for its staff nationally because all revenues received from oil will be used to repay loans borrowed after the oil shutdown. 21 November 2013 Minister Says Oil Money Is For Loan Repayment, No Salaries Unity Oil well. South Sudan early last year shutdown its oil production when it accused Khartoum of looting the resource. Oil revenues contribute to over 90% of the country’s annual budget. [File] By Waakhe Simon Wudu JUBA, 21 November 2013 [Gurtong] - The Minister of Finance Hon. Aggrey Tisa Sabuni told press yesterday that government is currently paying $4.5 billion borrowed loan mainly from oil operating companies in the country hence its delay to pay its staff for closely two months now. “As I speak the payment of four shipments have not come on our way. They all gone to those companies that we borrowed from,” Tisa said. “The domestic borrowing to the tune of $4.5 billion must again be paid out of domestic collections, non oil revenue as well as oil revenue,” he said. The Minister explained that the foreign borrowing was denominated on the sale of South Sudanese oil with the revenue going directly to the oil companies that lend the loans. South Sudan early last year shutdown its oil production when it accused Khartoum of looting the resource. Oil revenues contribute to over 90% of the country’s annual budget. Government was then forced to announce austerity measures in an effort to cost-effective utilize the little resources it had then. However, borrowing in an effort to compliment other domestic revenues was unavoidable.
Posted on: Thu, 21 Nov 2013 14:39:05 +0000
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