THE IMPACT OF COMMERCIAL BANKS PORTFOLIO FOR FINANCING GOVERNMENT AGRICULTURAL CORPORATIONS ON THE PERFORMANCE OF THE IRRIGATED SECTOR IN THE SUDAN

Abstract

The agricultural sector has particular significance in the Sudan economy. It contributes a great share in the Gross Domestic Product, as well as the major source of foreign currencies besides absorbing a great ratio of the labor force.

The agriculture Sector in Sudan has been hampered by a number of problems and constraints inherent in the Sudanese economy. Major among these problems is finance.

Agricultural finance is a very important input in agricultural production because most agricultural operations depend largely on the availability of funds at a certain time and in adequate amounts to help the farmers to carry out their production plan with greater flexibility and success.

The Central Bank of Sudan (CBS) continued to finance the public agricultural corporations in the irrigated sub-sector, such as Gezira Scheme, New Halfa Scheme, and El-Rahad Scheme, since the sixties. But the finance of these corporations by the CBS led to accumulation of debt.