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Vol 60 No 17

Published 30th August 2019

South Sudan

Juba's payday loan habit

The government’s fondness for pre-selling oil greases the wheels but hurts the exchequer. It’s an addiction that will be hard to break

Developing countries have long been advised against forward-selling their natural resources – often their only source of foreign exchange – in return for upfront cash. The credit is expensive, fluctuations in prices disadvantage the seller, and fiscal planning suffers. Yet poor governments needing cash to govern often cannot resist the temptation.

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