Press Release: IMF Receives Membership Application from South Sudan, Seeks Contributions to Technical Assistance Trust Fund to Help New Country
April 20, 2011Press Release No. 11/145
April 20, 2011
The International Monetary Fund (IMF) has received an application from the authorities of South Sudan for admission to membership in the IMF after South Sudan becomes an independent country on July 9, 2011. The application for admission to membership in the IMF from South Sudan will be considered in due course as set forth below. Sudan will remain a member of the IMF and retain all its quota in the Fund as well as all its assets in, and liabilities to, the IMF.
Under the IMF's prescribed procedures for membership applications, South Sudan’s application must first be investigated by the IMF's Executive Board. After its investigation, the Executive Board submits a report to the Board of Governors of the IMF with recommendations in the form of a Membership Resolution. These recommendations cover the amount of quota in the IMF, the form of payment of the subscription, and other customary terms and conditions of membership. After the Board of Governors has adopted the Membership Resolution, the applicant country may become a member once it has taken the legal steps required under its law to enable it to sign the IMF's Articles of Agreement and to fulfill the obligations of IMF membership. The IMF currently has 187 member countries.
In view of South Sudan’s application for IMF membership, the IMF intends to seek donor contributions to a special Trust Fund for IMF Capacity Building for South Sudan. This trust fund will provide intense IMF technical assistance to the authorities in critical areas relevant to building the new country’s macroeconomic institutions. Harnessing its expertise and infrastructure, the IMF would provide technical assistance in its areas of core expertise to enable the design, implementation and monitoring of sound macroeconomic policies, including by developing a fiscal framework, establishing the central bank and its core activities, building statistical capacity and putting in place the legislative framework required for effective economic and financial management. The trust fund would total US$10.6 million for just under four years and aims to mobilize quickly, given the urgency of needs in South Sudan.