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.


s
Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Chemical Weapons Use and International Hypocrisy 2018-04-27 06:14:59 Eric Reeves “The scale and brutality of these attacks are hard to put into words. The images and videos we have seen in the course of our research are truly shocking; in one a young child is (...)

A new approach to peace 2018-04-23 06:16:35 By Miroslav Laják When the United Nations was created, its founders envisioned a different kind of world. A world in which disputes were resolved in meeting rooms and not battlefields. A world (...)

Bring Sudanese troops home now 2018-04-21 15:25:57 By Salah Shuaib The Sudanese troops fighting hard now in Yemen, who were sent there by order of al-Bashir, should return home. The process of implementing this task is much challenging. But, we (...)


MORE






Latest Press Releases


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 (...)

Appeal for forgiveness and pardon of John Agou Wuoi 2018-03-07 08:28:08 H.E. Salva Kiir Mayardit, President and Commander-in-Chief, of the Sudan People's Liberation Army (SPLA), Republic of South Sudan (RSS), 5th February, 2018. Through: Hon. Michael Makuei Lueth (...)


MORE

Copyright © 2003-2018 SudanTribune - All rights reserved.