Home | News    Wednesday 14 May 2014

Sudan’s CBoS orders banks to stop offering auto, real estate loans

separation
increase
decrease
separation
separation

May 13, 2014 (KHARTOUM) – The Central Bank of Sudan (CBoS) issued a circular on Tuesday directing banks to stop offering auto or real estate loans unless applicants were eligible for an exemption.

JPEG - 13.3 kb
Sudan Central Bank governor Abdel-Rahman Hassan (Ashorooq TV)

According to the directive, banks are not to extend loans for the purpose of buying any vehicle except commercial trucks, minibuses and buses with a capacity of at least 25 passengers.

The CBoS also prohibited banks from financing land purchases, land development, construction of buildings and apartment purchases.

Loans made for popular and economic housing through guarantees of the National Fund for Housing and to develop land for agricultural purposes is exempt from this new rule.

The central bank said this decision was made in order to channel resources to productive sectors to achieve economic balance.

But the move will have dire consequences on auto companies and mortgage lenders who for years financed consumers in return for a set profit margin.

Last year, the International Monetary Fund (IMF) called on Sudan to "closely coordinate its monetary policy with fiscal policy to make room for more credit to the private sector".

It noted that figures in Sudan show credit to the private sector stands below the average for low-income countries.

"This gap reflects a broad range of factors, including the secession of South Sudan, bank concentration around the capital city (which leaves much of the country underbanked), outdated legal, regulatory, and institutional frameworks, and recent restrictions on foreign exchange operations introduced by CBOS," the IMF said.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.

Comment on this article



The following ads are provided by Google. SudanTribune has no authority on it.


s
Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Sudan’s Bashir is playing a dangerous game 2018-05-23 05:09:04 The attempt of the Sudanese president to engage with rival regional interests in a bid to stay in power might fail. By Ahmed H Adam Sudan's political crisis is sliding into a dangerous phase. (...)

Salva Kiir’s cunning strategy 2018-05-19 07:40:06 By Duop Chak Wuol Salva Kiir likes to preach democracy to confuse people, looks for ways to legitimize his atrocious regime, uses deception to promote his despotism, and calculatingly waits for (...)

Lessons for South Sudan and IGAD-Led peace forum 2018-05-16 23:28:16 James Okuk, PhD “The polis exists to assure the good life” – Aristotle. “For however strong a ruler may be, he will always have need of the goodwill of the inhabitants if he wishes to remain in (...)


MORE






Latest Press Releases


The Suspension of Hurriyat Online Newspaper 2018-04-29 07:04:37 Sudan Democracy First Group 28 April 2018 The Sudanese civil and political circles and those concerned with Sudan were shocked by the news that the management of Hurriyat online newspaper has (...)

Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan 2018-04-22 10:01:20 UN Secretary-General, New York African Union Commission, Addis Ababa UN High Commissioner for Human Rights, Geneva Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan (...)

Abyei celebrates Mine Awareness Day 2018-04-05 08:52:03 4 April 2018 | Abyei - The United Nations Interim Security Force for Abyei (UNISFA) and the United Nations Mine Action Service (UNMAS) commemorated the International Day for Mine Awareness and (...)


MORE

Copyright © 2003-2018 SudanTribune - All rights reserved.