Gum Arabic Exporters Division Criticises Circular to extinguish Banks’ Losses

Sudan Events – Rehab Abdullah
Head of the Gum Arabic Exporters Division, Ahmed Al-Anan, criticized the Bank of Sudan circular to extinguish the fires of the banking system.
Al-Anan explained in his statement to (Sudan Events ) that one of the functions of the Central Bank is that it is the last resort when the banking system is exposed to circumstances beyond its responsibility, but he saw that the Central Bank CB transferred this role not to the banks in reality but to the shareholders, because transferring the assignment to shareholders to extinguish the fires of cash and assets weakens the Central Bank’s desire for capital to contribute to strengthen the banking system, so how can a new shareholder contribute to a bank and wait ten years until he finds a return on his contribution? How do you give banks or shareholders 10 years because they lost their cash and assets and the clients a year and a half while they are in the same circumstances where they lost their cash and assets and even the goods that were financed?
He asked, so where did the payment come from and one of their goods was stolen or looted? He explained that this is in the case of Profits. If the financing is a partnership and it is known in Sharia and contract, if a loss occurs, both parties bear it according to their contribution. Al-Anan called for giving customers the same period as banks to repay debts, but rather financing them for a continuous period of ten years, in addition to merging banks into groups not exceeding five to ensure strengthening their capital and continuity, then having branches of the group in all of Sudan without the need to repair the branches of each bank (the group of five banks operates with one healthy branch out of five options), addition to strengthening its deposits by activating several applications in one application, in addition to establishing new systems for selecting boards of directors and executive managements, as there must be members in the boards outside the system of shareholders from experts and economists, with a focus on financing exports at a high rate and with apparent incentives and financing the agricultural and industrial sector to bring in currencies and market local agricultural or industrial products, stressing the need for financial decisions (taxes/government spending) to enhance the chances of success of monetary policies.