Sudan’s Central Bank has ordered commercial banks to intensify efforts to recover non-performing loans, underscoring tensions between stabilising the banking sector and supporting a war-damaged economy.
In a directive, banks were instructed to activate debt-collection units, pursue legal action and, where necessary, seize or liquidate collateral tied to unpaid loans.
Lenders must also submit monthly recovery reports, with management performance assessed on results.
Officials say rising defaults since the outbreak of conflict in April 2023 have weakened banks’ ability to finance economic activity, making recovery measures necessary to restore financial stability.
The move has drawn criticism from business groups, which argue that wartime conditions and widespread asset destruction make aggressive debt collection risky.
Critics warn the measures could force more companies to close, deepening the economic downturn.
