Sudanese economy is in its ’weakest state’, says former bank governor ARTICLECOMMENTS (6) EmailPrintSave
April 7, 2011 (KHARTOUM) – The former governor of Sudan’s central bank Sabir Mohamed Al-Hassan sounded the warning bell on Thursday over the economy saying that it is in its "weakest state" and needs to be addressed on an urgent basis. Sudan’s former central bank governor Sabir Mohammad al-Hassan (Reuters) Speaking at an event hosted by the Bankers Association in his honor, Al-Hassan described the economy as suffering from imbalances due to external shocks and delay by authorities in implementing the necessary reforms. The ex-governor said that the big challenges encountered require cooperation and an early start to weather the critical stage faced by the country. He emphasized that the current crisis can be managed only by a comprehensive program of economic reform. Al-Hassan also revealed for the first time that his departure from the central bank last month was not without cause but declined to discuss the reasons saying this is not the time for that. At the time, the governor said he had asked the presidency not to renew his contract which expired March 7th. He was quoted as saying that reasons behind his decision were his age and length of time he had spent at his current position saying it affected his health as well his family and social relations. He denied reports that differences with the economic team in the government prompted his move. His resignation came few months away from the country’s official split between North and South as a result of the referendum that took place in January. The breakup will deny the North billions of dollars in revenue from oil produced mostly in the South. Under a 2005 peace accord for the last five years both sides equally split the proceeds of the exports from the oilfields. Talks are underway between the North and South over a possible continuation of sharing oil proceeds but likely at a reduced percentage for the North. Sudan is witnessing sharp increases in cost of living for ordinary citizens and severe shortage in hard currency. An austerity package approved last January lifted subsidies partially on petroleum products and sugar. The finance minister said that this was necessary to avert an imminent economic collapse. Analysts say years of overspending and oil dependency have caught up with Khartoum. Foreign investment has slowed because of the global financial crisis and a soaring import bill has caused inflation to rise and foreign exchange shortages. The former governor defended his record saying that all the decisions and policies taken during his term were "correct, positive and successful" and that there were no errors but more pros than cons. He added that during his term there was a remarkable improvement and advancement in the banking sector. Al-Hassan was succeeded by former finance minister Mohammad Khair al Zubair. (ST) -- You received this message because you are subscribed to the Google Groups "JFD info" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/jfdinfo?hl=en.
