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IMF Urges Fiscal Restraint in South Sudan as Inflation Soars

  • Spending controls may help cut budget gap to $300 million
  • Policy reform seen encouraging donors to support government

The International Monetary Fund urged war-torn South Sudan to curb spending in the fiscal year beginning July or risk widening its budget shortfall to $1.1 billion, or a quarter of its gross domestic product.

Africa’s newest nation should avoid financing the gap through borrowing from the central bank, whose international reserves can only cover a few days of imports, or accumulating arrears, the Washington-based fund said in a statement on its website