South Sudan Seeks $2.5 Billion in Oil-Backed Loans Amid Debt Concerns

South Sudan's petroleum ministry has requested $2.5 billion in loans secured by oil; an amount surpassing the national annual budget. The loans, requested from Indian and Chinese firms, are under scrutiny due to potential impacts on national debt and historical issues of corruption in the country.

South Sudan's petroleum ministry has made a substantial financial move, seeking $2.5 billion in oil-backed loans from two international companies, surpassing the nation's annual budget.

The ministry clarified that the funds are intended strictly for government purposes and are in preliminary stages with no transfers yet made.

Concerns arise from the International Monetary Fund about increased public debt and potential corruption, echoing the U.N.'s reports of previous looting fueling humanitarian crises.

(With inputs from agencies.)