Agreement on establishing first Egyptian-Sudanese Bank

Khartoum witnessed late last week the signing of the statute of the first joint Egyptian-Sudanese Bank with an authorized capital of $ 25 million out of which $ 15 million in a paid up capital.

The Egyptian side is to contribute by 56 percent to the new bank where the Egyptian Commercial Bank's stakes account for 51 percent while individuals and institutions will share by 5 percent.

The Sudanese side contributes by 44 percent to the bank to be established under the rubrics of the Sudanese-Egyptian Bank out of which 25 percent will be put up for public subscription.

The new bank is to be based in Khartoum, Sudan.

The construction arrangements are due within the near future while the bank's operations are to start within the last quarter of this year, Deputy Board Chairman of the Egyptian Commercial Bank Gamal Moharram said.

The Bank will focus on financing foreign trade between Egypt and Sudan and helping Egyptian exporters gain an access to the Common Market of Eastern and Southern Africa (COMESA) member states markets, he added.

Moreover, the new entity is to assist in spreading out banking retailing services and automated teller machines (ATM) in Sudan, according to Moharram.

However, the Bank's current strategy focuses on searching for the highest revenue and growth rates for shareholders, Moharram noted.

The Bank also discussed contributing to financing a host of new investment projects atop of which is setting up a new Sudanese University, Moharram noted.

On the other hand, negotiations are under way between Egyptian and Sudanese businessmen on setting up a modern storage company in Sudan for the exported Egyptian commodities whose capital is to reach $one million, Moharram disclosed.