South Sudan may join IMF in early 2012

PanARMENIAN.Net - Newly independent South Sudan is expected to become a member of the International Monetary Fund in early 2012, the head of the International Monetary Fund said on Friday, December 16, after talks with President Salva Kiir.

"South Sudan has applied for membership earlier this year and I look forward to South Sudan becoming the Fund's 188th member in early 2012," Christine Lagarde said in a statement, saying the country's membership application was in an "advanced stage".

Lagarde said South Sudan faces "formidable challenges," including ensuring economic stability, building institutions to support its economy and managing oil revenue wisely.

She said the IMF has been providing technical support and training to the new government in public financial management, oil revenue and foreign reserves management, central banking and financial supervision, as well as economic statistics.

"We are working on a 3-year program of dedicated technical assistance," she added.

Kiir told a conference in Washington this week that South Sudan is determined to become an "island of stability" in Africa after emerging to claim independence in July, culminating a 2005 peace deal that ended decades of civil war with Sudan, Reuters reports.

South Sudan accounts for about 75 percent of the formerly united country's 500,000 barrels per day of oil output. Oil revenues could make it one of the wealthiest countries in the region - at least on paper.