KIU, Western Campus – Commercial Banks in Uganda, under their umbrella organization, the Uganda Bankers Association (UBA), have agreed to slash the interest rates charged on loans in accordance with a Bank of Uganda (BoU) directive issued on July 7.
This follows a meeting on Saturday, July 10 among the Chief Executives of the banks, which was convened to discuss a way forward after the Governor of BoU, Emmanuel Tumusiime Mutebile, wrote to the banks expressing his dissatisfaction at their failure to heed the Central Bank’s directive.
Following Saturday’s meeting, UBA announced in a statement that banks will lower interest rates within 30 days, although there was no mention of the proposed new interest rates.
The news of BoU’s intervention was warmly received by the business community, as many businesses try to get back onto their feet, following the economic slump caused by the national lockdown necessitated by the outbreak of the COVID-19 pandemic.
Ackline Twikirize, a mobile money operator in Ishaka town who earlier told this website that she had faced difficulty in accessing credit because of the high interest rates, welcomed the commercial banks’ decision.
“This is good news. Let’s wait and see the new interest rates that they will introduce. I just hope they are reasonable enough for us,” Twikirize said.