Sudan downplays impact of world financial crisis on local economy

October 5, 2008 (KHARTOUM) – The Sudanese finance and national economy minister Awad Al-Jaz said that the financial crisis that hit the world markets will have little or no impact on the local economy.

Al-Jaz said that because of the US sanctions, Sudan has been shielded from the ripple effects of the collapse in the credit markets across the globe.

Sudan’s major trading partners reside in the East and primarily China which buts two thirds of its oil.

This week Chinese premier Wen Jiabao said that the country’s economy is strong enough to withstand the impact of the global financial crisis and may even help the world by maintaining fast growth.

The Sudanese official said that lessons learned from the crisis include strengthening internal production and attracting foreign investments as well as ensuring that the banking sector is performing on solid grounds.

He also revealed that a committee from the Central Bank and his ministry are monitoring the situation as a precaution from any possible repercussions that may reach Sudan.

Sudan is unlikely to be directly threatened by the credit crisis as its economy does not utilize more complex financial instruments used in other world countries.

However a world recession may furtrher push down the price of oil which is the main source of revenue in Sudan.

Western governments have been scrambling to come up with measures to weather the financial crisis which led to the collapse of a number of major institutions and threatened many more.

The US Congress approved a $700 bailout package that aims at cleaning the balance sheets of banks with substantial amount of bad mortgage debt on their books.

US president Bush called the jaw dropping price tag on the package as necessary to “address the underlying problem in our financial system”

(ST)