Banks scamble for Sudanese oil revenue James Anyanzwa
Publication details: Nairobi The Standard Group Tuesday, January 27 2009Description: p.1 [Financial Journal], The Standard, January 27 2009Subject(s): Summary: Three commercial banks have entered into a cut-throat competition to guarantee a massive Sh.11.6 billion loan to the government of Southern Sudan. The struggle is motivated by by the enormous desire to reap from a huge Sh.19.75 billion of oil reserves that would be channeled through the guaranteeing bank every month. The contract is viewed as an opportunity by the receiving bank to replenish its balance sheet. The deal has already attracted two foreign banks and a Kenyan bank. There is however the element of political risk when lending to Southern Sudan because of the volatility that still exists.
Three commercial banks have entered into a cut-throat competition to guarantee a massive Sh.11.6 billion loan to the government of Southern Sudan.
The struggle is motivated by by the enormous desire to reap from a huge Sh.19.75 billion of oil reserves that would be channeled through the guaranteeing bank every month.
The contract is viewed as an opportunity by the receiving bank to replenish its balance sheet.
The deal has already attracted two foreign banks and a Kenyan bank.
There is however the element of political risk when lending to Southern Sudan because of the volatility that still exists.
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