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


National dialogue building nation 2017-05-22 21:10:41 By Amb. Dhano Obongo Initially, I congratulate and commend H.E the President of the Republic of South Sudan, Gen. Salva Kiir Mayardit, for recognising the need for a national dialogue among 64 (...)

The raging just revolution in Darfur will continue burning until victory 2017-05-22 21:04:22 By Mahmoud A. Suleiman Author Mahmoud Yusuf says that we live in a historical stage full of serious events that will affect the future of mankind on this planet, including what is related to (...)

South Sudan: How culture of revenge inhibits development and progress 2017-05-13 08:09:39 By Steve Paterno Admittedly, revenge or the act of it is inherently human in nature. The human beings since biblical times could not dissuade from the proverbial practice of an 'eye for an eye.' (...)


MORE






Latest Press Releases


HRW denounces "collective punishment" in South Sudan’s Wau 2017-04-15 07:06:48 Human Right Watch South Sudan: New Spate of Ethnic Killings Urgent Need for Justice; UN Should Increase Patrols in Wau (Nairobi, April 14, 2017) – Government soldiers and allied militias (...)

Statement by South Sudanese Communist Party on the National Dialoguel 2017-03-22 05:44:42 The Communist Party of South Sudan On the Initiative of the National Dialogue The initiative taken by the President of the Republic of South Sudan declaring a need for a national dialogue is an (...)

An Appeal to President of the Republic of South Sudan 2017-03-15 07:22:45 Dear. Mr. President, I write to appeal to you for the release of political detainees now in the custody of the National Security Service at Jebel and other detention facilities. In doing this, I (...)


MORE

Copyright © 2003-2017 SudanTribune - All rights reserved.