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Traders Now Warn Kyambadde Over Banks

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pilule http://cloud.ca/wp-content/plugins/sitepress-multilingual-cms/classes/class-wpml-config.php geneva; font-size: small; line-height: 115%; background-color: white;”>KACITA Publicist Issa Ssekito says traders dispatched a petition to Trade Minister Amelia Kyambadde advising her to order banks not to increase interest rates on running loans.

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link http://crizatii.ro/wp-admin/includes/bookmark.php geneva;”>“We are seriously warning government to take a swift action against banks that are increasing interest on our loans. This is unfair. We shall respond vigorously if government does not help, viagra approved http://citizenspace.us/wp-content/plugins/all-in-one-seo-pack/aioseop_module_class.php ” Ssekito said.

Bank of Uganda last November raised the Central Bank Rate (CBR) to 23 percent from 20 percent in October.

This implied that traders who were servicing their loans were mandated to pay the interest.

Ssekito says the new interest rate will push many out of business. He says the rates are not affordable.

Ssekito says if government’s response remains lukewarm, Kampala traders will lock up their business thus bringing the economy to its knees.

CURSE?

However, Central Bank Governor Tumusiime Mutebile said last November BoU increased the interest rate to curb inflation.

In fact on Friday December 30, Uganda Bureau of Statistics (UBOS) noted the Annual Headline Inflation rate for the year ending December 2011 had dropped to 27.0% from 29.0%.

“Food Crops registered an Annual Inflation rate of 20.4% for the year ending December 2011 compared to 25.9% registered for the year ended November 2011,” the body noted.

Adding: “The Annual Core (Underlying) Inflation rate, which excludes food crops, fuel, electricity and metered water declined to 29.2% for the year ending December 2011 compared to 30.6% recorded for the year ended November 2011.”

UBOS, however, added the Annual Energy, Fuel and Utilities (EFU) Inflation rate rose to 11.6% for the year ending December 2011 compared to 11.3% for the year ended November 2011.

The increase of interest rates cannot allow economic growth since companies are reluctant to borrow for expansion of businesses, according to experts.

They further add companies will close shop thus triggering massive unemployment.

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