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BoU Advised On Hiking Interest Rates

Bank_of_Uganda_Governor_Emmanuel_Tumusiime_Mutebile_989652099

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discount http://cooleyhandy.com/components/com_k2/templates/default/category.php geneva;”>Commercial banks increase the prime lending rates and interest rates per year.

cure geneva;”>

cialis 40mg geneva;”>Business community and individuals have been forced to reduce on their lending-borrowing capacity due to the fear of making losses as their securities are taken up by commercial banks on failure to pay back the loans fully.


Individuals say that they are afraid of acquiring loans to expand businesses due to the increasing bank rates of 25% that brings failure into paying back the loan installments and their property is taken up by banks.


Today, commercial banks are after maximising profits but not boosting business enterprises that have led to many people cutting their borrowing hence contractions on bank’s loan books as customers reduce.


Evarest Kayondo, the chairman of KACITA, in an exclusive interview told Chimpreports that it’s the role of the central bank to regulate the interest rates and put up strict laws on commercial banks so that they can reduce on the interest rates to affordable ones.


“Most of these commercial banks are foreign, with foreign terms and conditions that do not favour the Ugandan business community,” Kayondo said.


Kayondo also warned fellow traders to avoid signing for loans in these banks without reading carefully the terms and conditions, loan fees, period, among others.


He stressed that this has resulted into losses as most of the traders sign for big loans out of ignorance and at the end, their securities are taken up by these banks.


He also went ahead and requested the banks to write the terms and conditions in local languages for people who are not educated to understand them very well because it is among the problems that business men have.

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