Seventy-five-year-old Bicentina Alal and her 80-year-old husband Tito Okema, have been saving money in a metallic case for over three years. The couple lives with their six grandchildren in Kali-Kali Village in Rec Iceke Parish in Layima Sub County, which is about 50kilometers away from Gulu City Centre.
Dr Adam Mugume, the Executive Director for Research Bank of Uganda says that banks incur expenditures to offer services and there is a justification for users of these bank services to contribute to the running costs.
Bank of Uganda’s Executive Director for Research, Dr Adam Mugume says if the 2021/2022 budget proposals are passed, the total outstanding debt of the country will rise to Shs86.9 trillion, which will be 52% of the GDP.
“BoU will extend for six months effective from 1st April 2021 the Credit Relief Measures (CRM) and also maintain the Covid-19 Liquidity Assistance Program (CLAP) to supervised financial institutions.
BoU will review CLAP from time to time as the pandemic evolves to ensure viability of solvent supervised financial institutions that may come under liquidity stress during the pandemic and to support credit extension”, said Deputy Governor, Michaeil Atingi-Ego.
The Central bank is worried for the financial sector and the economy as a whole, because the relief measures were temporary and soon, the borrowers will bear the cost of repaying the loans.
Tumubweine also says the government will have to increase its borrowing from the domestic market because of the big budget financing gap left by the local revenue mobilization and the external sources.
In the 10th edition of the Agriculture Finance, Year Book developed jointly by the Ministry of Finance, Planning and Economic Development, the Bank of Uganda and the Economic Policy Research Centre, the focus is on the small agriculture entrepreneurs.
The economies of Ethiopia, Uganda, Ivory Coast, Egypt, Ghana, Rwanda and Kenya withstood the economic impact of the pandemic so successfully that they were among the world’s 10 fastest-growing in 2020. At least five of them are expected to remain in that elite growth club through 2022, according to forecasts by economists compiled by Bloomberg during the past three months
Kwagala, one of the complainants says the company paid the promised 5 per cent interest on the fixed deposit account for the first few months before cutting it by half. She has since failed to even withdraw the principal amount, which brings the total to about 190 million Shillings.
However, the Central Bank says a foreign bank can choose to contract a person or company as their agent in Uganda using the general contract laws. Under this, they are not required to get approval from the Bank of Uganda. “Such agencies do not fall within regulated agency under the FIA, 2004 and do not require a BoU license”, it says.
The Registrar for the High Court Execution Division, Isah Serunkuma issued the first garnishee orders on November 20, 2019. The order stemmed from a miscellaneous application filed by 13 Mulago Paramedical students who in 2011 sued Government over the delayed award of their diplomas and certificates.
Martine Erimu, the chairperson of the Teso Grain, Rice Millers, Processing and Marketers Association- TEGRIMMA, says some financial institutions limit farmers when borrowing but are fast in collecting the money.
In his presentation on Tuesday evening, the Finance Committee Chairperson, Henry Musasizi explained that the Bank of Uganda Act, 2000 provides that government is authorized to issue securities for recapitalising BOU where its capital impaired.
According to the Bank of Uganda act, the Central Bank Governor who is also the most senior officer in the bank also chairs the board of directors and deputized by the Deputy Governor. The other members are the Secretary to the Treasury and directors from different departments in the bank.
Dr Louis Kasekende, the Bank of Uganda Deputy Governor, says that the Central Bank has not been monitoring loans transactions on mobile money platforms because the Telecoms had also not been given licenses to offer products to clients.
Doctor George Wilson Ssonko, the head of Financial Consumers Protection Unit at the Bank of Uganda, says the problem arises from many borrowers failing to promptly meet their obligations of loans repayment.
A statement issued this evening by the Central Bank indicates that The Bank of Uganda is working very closely with investigative teams and the Ministry of Finance to ensure that the services and operations of Post Bank Uganda Limited are not interrupted.