South Sudan's $13 Billion Loan from UAE Company

SOURCE www.foxnews.com
South Sudan is close to securing a $13 billion loan from a company in the United Arab Emirates, despite difficulties in managing debts backed by its oil reserves. The loan would likely tie up most of South Sudan's revenue for many years, depending on oil prices. The country has a history of civil war and is under pressure to implement a peace deal and prepare for elections.

Key Points

  • South Sudan is close to securing a $13 billion loan from a company in the United Arab Emirates
  • The loan would be secured against the delivery of crude oil for up to 17 years
  • South Sudan has a history of civil war and is facing pressure to implement a peace deal and prepare for elections

Pros

  • Potential funding for infrastructure projects in South Sudan
  • Opportunity for economic development

Cons

  • Potential risk of tying up most of South Sudan's revenue for many years
  • Concerns about the country's ability to manage oil-based debts