Sudan could cut back on tax breaks for businesses and delay investment in “non-priority” public projects to create more revenue for social services that help low-income earners, the International Monetary Fund said.
A nomadic group in the disputed border region of Abyei threatened war if it’s excluded from a referendum over the area’s status, after the presidents of Sudan and South Sudan failed to end an impasse over the issue.
South Sudan’s government said it opposes plans by ethnic Ngok Dinka to hold a referendum on self- determination in the disputed Abyei region as Sudanese President Umar al-Bashir arrived in the country for talks on the issue.
The United Nations Security Council warned Sudan and South Sudan to halt fighting and settle their differences on splitting revenue from South Sudan’s oil reserves within three months or face possible sanctions.
South Sudan is in talks with the International Monetary Fund for a loan of as much as $50 million to help the two-year-old country recover from a halt to oil exports, central bank Governor Kornelio Koriom Mayik said.
The International Monetary Fund urged Sudan to divert more than $3 billion in compensation it’s set to receive from South Sudan to back reforms that will provide the government with more reliable revenue streams.
South Sudan plans to increase crude output by 20 percent to 200,000 barrels a day after reaching an agreement yesterday with Sudan to keep the oil export pipeline open, foreign affairs spokesman Mawien Makol Arik said.
Sudanese President Umar al-Bashir meets his South Sudanese counterpart Salva Kiir today in a bid to resolve a border dispute that threatens to halt oil exports from South Sudan, officials from the two countries said.
South Sudan will raise funds from local banks, boost tax collection and consider borrowing outside the country to offset the impact of a looming shutdown of its oil exports, Finance Minister-designate Aggrey Tisa Sabuni said.