South Sudan refuses to authorize Islamic banking system
April 20, 2007 (JUBA) — The Southern Sudan cabinet rejected to authorize Islamic banking system to operate in the south, saying it will breach the Comprehensive Peace Agreement (CPA)
The Government of Southern Sudan (GOSS) Council of Ministers firmly rejected pressure from Islamic banks operating in Southern Sudan, for the Bank of Southern Sudan (BOSS) to allow them to operate a mixed conventional/Islamic banking system in the Southern Sudan.
In a statement on Wednesday April 18, Samson Kwaje, Minister of Information, made clear that such a move would be in clear contravention of the terms of the CPA.
The CPA stipulates that the Southern Sudan will establish a conventional banking system, whilst the North will operate according to Islamic banking Principles. “You cannot do both”, he said.
As a result of this decision, the minister said, a number of Islamic banks had indicated that they would withdraw from the Southern Sudan.
These banks are: the Omdurman National Bank, Bank of Khartoum, Faisal Islamic Bank and Farmers Bank, which currently operate in Juba and other cities in Southern Sudan.
If these banks, or any others, are unable to comply with the requirement to provide purely conventional banking services, they will be obliged to cease operating in Southern Sudan.
(ST)