NAIROBI: The International Monetary Fund said it had released $174.2 million to South Sudan under its Rapid Credit Facility to address urgent balance of payments needs.

"The pandemic-related oil price shock and devastating floods have led to an economic downturn. The ... downturn widened the fiscal and the balance of payments deficits, opening large financing gaps in the absence of concessional financing," the IMF said in a statement late on Tuesday.

It expected the economy would contract 4.2% in the 2020/21 fiscal year, it added.