CBoS Warns Banks Against Financing Bankrupt Clients

Sudanhorizon – Hala Hamza

Informed banking sources confirmed that the Central Bank of Sudan has directed banks not to provide financing to any client who has declared bankruptcy, has been liquidated, or has outstanding obligations to banks that they have failed to repay or settle. Banks were also prohibited from granting financing under the name of a bank client or employee without their consent.

The sources told Sudanhorizon that the Central Bank stressed the need to ensure that related parties are not given preferential treatment over other clients when granting financing facilities, whether in terms of profit margins, fees, collateral, financing and grace periods, or credit assessments.

The Central Bank also warned against providing guarantees or other financial commitments to any individual in amounts exceeding the percentage of paid-up capital and reserves specified by the Central Bank, or obtaining such facilities without its prior approval.

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