The Sudanese advisor announces the start of implementing the reform plan in government and private banks

The Sudanese advisor announces the start of implementing the reform plan in government and private banks

4-11-2024

The Sudanese advisor announces the start of implementing the reform plan in government and private banksInformation/Baghdad…
The Prime Minister’s Advisor for Economic and Financial Affairs, Mazhar Muhammad Saleh, confirmed today, Thursday, that Prime Minister Muhammad Shia’ al-Sudani is interested in reforming the course of the private and governmental banking system, while indicating the start of implementing the reform plan for government banks.
Saleh said, “The banking market has a great division. For example, the capital of private banks or their share of capital from the government is about 78 percent, while the capital of government banks is 22 percent.”
He continued, “While government banks account for 85 percent of activities and assets, while private banking activity is 15 percent, therefore there are large disparities between private and government banks.”
He explained, “Private banks have almost coexisted on government allocations, whether through the window or by opening letters of guarantee for projects, meaning that any vibration exposes private banks to serious problems, so approximately 29 banks have been deprived of dealing in foreign currency.”
Saleh added, “Prime Minister Muhammad Shiaa Al-Sudani is very interested in reforming the course of the private and governmental banking system,” stressing that “there is a reform plan for government banks, and there is a foreign company that evaluates the banking work, its capital, and its functions until they are parallel to the work of international banks.”
He stated, “Private banks are facing a dilemma, especially after being deprived of trading in foreign currencies, even though they have coexisted with this issue. Therefore, the government is trying to create an internal environment that is supportive of them, and they need to correct their situations first.”

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