Home | News    Wednesday 16 July 2014

Sudan to sign $50 million loan agreement with Kuwait development fund

separation
increase
decrease
separation
separation

July 15, 2014 (KHARTOUM) – The Sudanese legislative and executive bodies are considering a $50 million loan offered by the Kuwait Fund for Arab Economic Development (KFAED) to finance development projects of the private sector.

Last February, the Sudanese government and the KFAED signed a 13.5 million KWD ($47.2 million) loan agreement to finance establishment of integrated laboratories for the mining sector in Sudan.

The two sides also signed a 25 million KWD ($85 million) loan agreement in July, 2013 to finance the heightening of Rossaires Dam. The loan was offered at a 2% annual interest rate in addition to 0.5% for administrative fees and a repayment period of 21 years including a 4 year grace period,

It was approved by the Sudanese parliament following a heated debate on the issue of violating Islamic Shar’ia law which prohibits borrowing money that has interest terms attached.

52 MP’s voted in favour of the loan with 46 against and 9 abstentions.

At the time, MP Suad al-Fatih from the ruling National Congress Party (NCP) said that god’s wrath will befall on Sudan for agreeing to this loan and started chanting "God is Great" and "There is no God but Allah".

But the former parliament speaker Ahmed Ibrahim al-Taher said he had asked the Islamic Fiqh (Jurisprudence) Council for an opinion in light of the necessity and also sought finance ministry input which emphasized the lack of alternatives.

Islamic law prohibits accepting the collection and payment of interest, also commonly known as ’Riba’. However, very few Muslim countries enforce this rule. The doctrine of necessity in Islamic legislation allows recourse to loans with forbidden interest in certain conditions.

The deputy chairman of the parliamentary subcommittee for economic affairs, Babikir Mohamed Tom, said in press statements on Tuesday that the $50 million loan was approved from Islamic Shar’ia perspective.

He said the loan, which is administered by the Central Bank of Sudan (CBoS) is offered at a repayment period of 8 years including a 3 year grace period.

Tom said his committee made a recommendation to the CBoS to direct the loan to finance rural development projects in farming and livestock besides employment projects for college graduates.

Sudan’s finances have tightened since oil-rich South Sudan seceded from the north in July 2011.

Furthermore, Sudan’s $41 billion foreign debt makes other countries reluctant to extend credit.

(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.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


An Alternative National Dialogue: Sudan’s last chance for sustainable peace and Unity 2014-08-30 06:18:14 By Suliman Baldo August 29, 2014 — Last week, with much fanfare and renewed hope on the part of Sudanese citizens, the African Union High Implementation Panel (AUHIP) for Sudan and South Sudan, (...)

A critique of the IGAD protocol for peace in S Sudan 2014-08-30 05:53:03 “A critique of the IGAD protocol on agreed principles on transitional arrangements towards resolution of the crisis in South Sudan” By David de Chand August 29, 2014 - First and foremost of all, (...)

IGAD failure to delivering peace for South Sudan! 2014-08-30 05:43:48 By Jacob Odong August 29, 2014- The East African Inter-Governmental Authority on Development (IGAD) is concluding a plan to allow for what they are calling a unity government for South Sudan. If (...)


MORE








Latest Press Releases


National Dialogue in Sudan: Past experiences and current challenges 2014-08-27 06:18:22 Sudan Democracy First Group (SDFG) Since independence, Sudan has undergone a number of national peace agreements, some of which were observed and honored for short periods, others which were (...)

A new approach to the National Dialogue will stop war and lead to democracy in Sudan 2014-08-22 06:50:30 A New Approach to the National Dialogue in Sudan that will Stop the Wars, Address the Humanitarian Crisis and Lead to Democratic TransformationChatham House, London on Wednesday, August 20, 2014 (...)

Friends and Diaspora of South Sudan urge leaders to choose peace 2014-08-19 20:29:59 FOR IMMEDIATE RELEASE CONTACT: Esther Sprague, Founder & Director, Sudan Unlimited 415.713.2495, esprague11@yahoo.com FRIENDS AND DIASPORA OF SOUTH SUDAN URGE LEADERS TO CHOOSE PEACE UNSC (...)


MORE

Copyright © 2003-2014 SudanTribune - All rights reserved.