26 June, 2006 (KHARTOUM) — Sudan central bank and Bahraini investment bank agreed to provide financial converge to commercial banks willing to invest in the agricultural sectors in the country.
The Bank of Sudan and the Arab Investment Company signed agreement establishing two funds to provide financial coverage for the commercial banks to enable them import raw materials, agricultural inputs and capita commodities beside funding purchase of agricultural machinery.
The two sides agreed to establish a fund to provide med-term finance for three years with a capital of 200 million US dollars to be guaranteed by the Bank of Sudan.
They also agreed to set up another fund to finance the importation of agricultural machinery and inputs with a capital of 50 million under guarantee of the Bank of Sudan. The two funds, which will start working as of the first of June 2006m would be run by the Arab Investment Company according to a bunch of regulations agreed on with the Bank of Sudan.
According to the agreement, the Arab investment Company is to extend technical support.
The two funds will start funding commercial banks after 6 months from its establishment.
The agreement was signed by the Deputy Governor of the Central Bank, Badreddin Mahmoud Abbass, and the General Manager of the Arab Investment Company of the Kingdom of Bahrain, Faisal Mansour Al-Alwan.
Addressing the occasion, the deputy Governor of the Bank of Sudan said the agreement comes as part of the efforts to make available funds for the Sudanese public and private sectors.