Sudan Defers Approval of 3 Donor Loans Due to Usury Concerns

Sudan’s national assembly has deferred approving three loans from bilateral and multilateral donors due to concerns that they involve usury, or the payment and collection of interest.

Usury is prohibited under Islamic law, but few Islamic countries enforce the rule, according to the Sudan Tribune.

Ahmed Ibrahim Al-Tahir, speaker of the national assembly, said Sudan is keen on implementing Islamic Shariah laws, particularly on the rules about usury, the newspaper reports, citing the state media. Al-Tahir reportedly added that the issue of approving the loan agreements with the Arab Fund for Economic & Social Development and the Kuwaiti Economic Development Fund could not be settled through voting and should be instead referred to Islamic scholars.

Some Sudanese ministers, as well as members of the national assembly, warned that rejecting the loans could adversely affect Sudan’s development, particularly given the limited borrowing options available to the country.

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  • Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.