Sudan Central Bank Orders Banks to Recover Non-Performing Loans Immediately

The Central Bank of Sudan (CBOS) issued a directive requiring banks to intensify efforts to recover non-performing loans, in a move aimed at protecting the banking sector from the repercussions of the ongoing conflict. The bank stressed that banks must immediately activate their collection departments and follow-up committees, and take all necessary measures to ensure the recovery of outstanding debts.

The central bank also granted banks the authority to pursue legal action, liquidate collateral, or take possession of guarantees to mitigate the negative impact of loan defaults on their financial position and their ability to perform their financial intermediation role during this critical period.

Banks have been instructed to submit monthly reports detailing the measures taken and their quantitative effect on delinquency levels, with the CBOS indicating its intention to evaluate the performance of executive management, boards of directors, and their committees based on the results of collection efforts and handling of non-performing loans.