Moody's Ratings predicted that the prolonged spillover of clashes in Sudan would lead to an increased risk of a negative credit impact on neighboring countries and multilateral development banks exposed to their debts.
According to Moody's, if the clashes in Sudan develop into a long civil war, the destruction of infrastructure and the deterioration of social conditions, this will lead to long-term economic consequences, a decline in the asset quality of multilateral banks in Sudan, as well as a rise in non-performing loans and liquidity. Any spillover into neighboring countries or a general deterioration in the region's security environment would raise broader concerns about the asset quality of multilateral development banks with a higher focus on loans in Chad, South Sudan, Ethiopia, and Egypt.
Source (Al-Arabiya.net Website, Edited)
