Debt in South Sudan

Public debt is money owed by the government, including borrowing guaranteed by the government. At the end of FY2025, public and publicly guaranteed debt was approximately US$3.5 billion, or about 100% of GDP. External debt made up roughly three fifths of the total. Commercial debt accounted for about 45.3% of GDP and was fully oil-collateralized. Multilateral debt accounted for 12.2% of GDP, including World Bank financing of US$71.7 million, African Development Bank financing of US$18.5 million and IMF financing of US$332.3 million. Bilateral debt accounted for about 3.8% of GDP. Domestic debt included approximately US$558.5 million in central-bank liabilities and two newly disclosed domestic-bank loans totaling US$772.1 million. These figures are not directly comparable with the June 2024 debt-sustainability assessment, which reported public debt of US$3.7229 billion, or 51.2% of GDP, because the reference date, coverage and definitions differed. The latest available assessment places overall and external public debt in distress or unsustainable conditions because of arrears, an unfunded financing gap and weak debt transparency. Debt service means payments of principal, interest and related charges. Public debt service was approximately 6.7% of GDP in FY2023/24. Oil revenue and export dependence make repayment and access to foreign currency sensitive to oil production, prices and payment terms. Commercial borrowing often has short maturities and high costs. The available assessment recommends avoiding new non-concessional or oil-backed borrowing. Salary arrears exceeded ten months and were estimated at about 6% of GDP in January 2025. Payment plans have not been consistently clear; the FY2024/25 plan aimed to maintain current salary payments and, after oil revenue recovered, add one month of arrears payments at a time. The Ministry of Finance and Planning manages public finance through its Debt Management Department, established under the 2024 Public Financial Management Act. Its debt strategy covers complete recording, reporting under the Debt Recording and Management System, creditor reconciliation, refinancing or restructuring, arrears clearance and a preference for concessional finance or grants. The department still has information gaps because loan agreements may remain with the Ministry of Petroleum or the Office of the President, while the Treasury and Accounts Directorate holds the actual debt-service payment information. No reliable current consolidated public-debt database has been established in the available evidence. Private formal credit is provided by Bank of South Sudan-regulated banks and microfinance institutions. Non-government credit was still small, at about 3.4% of GDP in June 2024, despite a reported 109.8% increase. A Credit Reference Bureau, or CRB, operated under Bank of South Sudan rules records credit accounts, loans, bankruptcies, late payments and credit inquiries. A borrower or guarantor can obtain credit information free of charge after an adverse credit decision, once every twelve months, or when applying for a new, additional, restructured or renewed credit facility. Other requests may attract the fee set by Bank of South Sudan. Credit data should be accurate, complete, current and free from errors. Borrowers must repay according to their contracts and provide accurate identification and financial information. Default can produce a negative credit status, while banks and microfinance institutions must classify problem loans, make required provisions and report under supervisory rules. South Sudan has no evidenced national consumer debt-relief or debt-counselling programme, private debt ombudsman or reliable nationwide statistics on household debt, defaults, collections or debt burdens. The Consumer Protection Act 2011 excludes banking, money lending and financial services, so many debt disputes are primarily governed by the contract, banking rules, the Insolvency Act and the courts. A creditor may agree to an extension, remission or alternative performance under the contract framework, but no automatic payment suspension or debt waiver applies. Informal and community-based finance remains relevant where formal access is limited. Savings and Credit Cooperative Organizations, commonly called SACCOs, are organized and coordinated nationally and at State and County level through the Ministry of Agriculture and Food Security's Directorate of Cooperative Development and the relevant cooperative authorities. These authorities may handle registration, audits, inspections, liability approvals, dispute settlement, cancellation and liquidation. Savings Groups, Village Savings and Loan Associations, known as VSLAs, and rotating savings and credit associations, known as ROSCAs, usually provide small, seasonal or community-rule-based loans. Their registration, fees, repayment periods, credit-reporting status and enforcement practices are not governed by one consistently documented national standard. They should not be treated as equivalent to a statutory insolvency or debt-forgiveness system. The Insolvency Act 13/2011 applies nationally to individual and corporate insolvency, but excludes statutory corporations, cooperative dissolution and partnership dissolution. A typical individual case may begin with inability to pay, followed by a statutory demand, creditor claims and a court bankruptcy order. Secured, unsecured and preferential claims are treated differently. An Official Receiver or trustee administers an individual bankruptcy, while a liquidator handles corporate winding up. A discharge requires a court order after the Official Receiver's report and a review of the debtor's conduct. The court may continue a claim against future earnings or property, and timing and court costs depend on the case. South Sudan has no evidenced standardized out-of-court debt-adjustment procedure. Contract-based collection, domestic court proceedings and, for some oil-prepayment or commercial claims, international litigation or enforcement risks can therefore remain relevant.