South Sudan asks financial institutions reduce “excessive” charges
February22,2010 (JUBA) –The semi-autonomous government of south Sudan (GOSS) has asked financial institutions in the region to reduce what it described as “excessive” charges saying banks should make significant adjustments to these fees.
“It is astonishing that financial institutions increase fees without consulting with concerned authorities like ministry of finance and bank of South Sudan,” he said.
The minister, who spoke to reporters following a visit to commercial banks in Juba this afternoon on Monday 22, said “the economy has shown some resilience in the midst of the global economic crisis, banks should further reduce interest rates”.
He further stated that global economy has posted some marked improvements in macroeconomic indicators and that this improvement should be reflected in financial transaction charges.
Inflation and yield rates on government securities have shown some improvements while the exchange rate of the Sudanese pound against hard currencies has also shown some stability in the recent months.
Previously it used to be that $1=2.80 in the black markets and 2.75 in the commercial banks but have currently dropped down to 2.65 in commercial banks and 2.74 in black markets.
Athorbei also urged Banks to extend their services to rural areas to improve financial inclusion. He said extending to rural areas will provide the bank with new customers and hence have a higher deposit base.
He cited Ezo, Tambura in western Equatoria State, and Kapoeta in Eastern Equatoria State, Akot, and Yirol in Lakes State as some of the areas that have potential for new customers.
The minister however said that the real challenge is for all financial sector players to play a role in enhancing savings mobilization and to effectively channel the public’s savings to support financing of economic activities in the region.
“Our people have stopped saving in banks but instead keep money in pockets and their houses susceptible to robberies by gangs,” he said.
He said despite the recent challenges facing the global economies, some national banks such as ivory had remained committed to growth through its efforts to expand its branch network and through product innovation.
The bank is earmarked to expand its branch network to other state capitals and counties this year, he said saying he expects the efforts, accompanied by prudence in risk management, to contribute to the further deepening of the financial markets.
(ST)
superior Junibi
South Sudan asks financial institutions reduce “excessive” charges
Mr. Deng athorbei must be mad when he try to convince Southern citizens to start saving their money in that poor, corrupt, and failed banks of Southern Sudan. Those banks such as NIle comercial banks fail almost every year and most their customers loss thousands of dollars when that happened. They however, never pay anyone back when this happened, how would you expect someone to go put money in this illiterate, failed, and poor banking system? shame on you man.
Which finacial standards did South Sudan use to measure their currency value such that they came up with very strong currency like the new sudanese pound?
Its even stronger than a Japanese YEN(120Y = $1) against US dollar, while Japan is the Forth largest and strongest economy in the world. You got to learn some economic to learn som tricks neighboring countries are using to exploit South Sudan.
The only thing that is currently happening is what economies call CAPITAL FLIGHT. Since we never produce or sell anything to neighboring countries but oil, all we get is spend our little money we get from OIL to buy food and hard material. All the Southern business people and the government officials have opened up bank acounts in foreign countries to make sure their money is secure and safe. No country can develop if the wealth of the citizens is outside the country!!!!! Mr Deng arthorbei better reform his failed finacial system in Southern Sudan to attract the wealth of the Southern citizens which could be used as loans to help the borrowers start small businesses etc.
Currently most foreign busisness folks send back any profit they make in Southern Sudan to their country of orgin!!!!! Folks South Sudan is currently a regional AGORO(black market in the border of Sudan and UGANDA during the 90s)
Time1
South Sudan asks financial institutions reduce “excessive” charges
Minister of Finance is correct, we should not allow banks to rob the citizens or even abuse their rights, authorities shold tight the screws on any banks who try to misuse its market given trust to rip-off citizens, the bank have to work within a reasonable and acceptable margin of profits, they cannot do what they want in our country, the people decide what they should do not the other way round.