VP Alupo: Lending rates to the public and private sector must be brought down

Vice President Maj (Rtd) Jessica Alupo (PHOTO /Courtesy)

KAMPALA —The 26th meeting of the Presidential Economic Council has taken place today with an agenda to reduce the cost of credit in Uganda.

The Council,  composed  of  Government,  and other players from the private sector as well as the Uganda Manufacturers’ Association (UMA) and Private Sector Foundation is charged  with the task of dealing with strategic National Economic Policy development.

The meeting chaired by Vice President Alupo at State House Entebbe discussed a paper by the National Planning Authority themed Reducing the cost of credit through Public Investment in Banking.

The meeting, also attended by PM Robinah Nabanjja, Deputy Attorney General Kafuuzi and Minister of Economic Monitoring, Peter Ogwang addressed and made proposals on key interventions and policy measures that would see the cost of credit reduce drastically. Some of the proposals included banking policy reviews, reducing domestic borrowing by Government, increasing of investment in public banking Institutions among others.

Alupo stressed the importance of debating research based ideas that seek to address issues which affect ordinary citizens, the economy and consequently, the cost of doing business.

“We must take concrete action on the proposals so that issues such as high interest rates,  and others are addressed  so that eventually, more people access funding and sustain their businesses and entrepreneur start ups in a vibrant economy.

The demand for collateral should be revised so as to include immovable property” she advised, adding that “Commercial bank lending rates must be brought down so as to increase the number of people in the money economy” she added.

The meeting had expert presentations and discussions from Prof Pamela Mbabazi, Chairperson of the National Planning Authority-accompanied by the ED- Dr. Joseph Muvawala, the Deputy Governor-Bank of Uganda- Dr. Michael Atingi-Ego,  and several senior officials from  Uganda Development Bank, Uganda Manufacturers Association, Uganda Investment Authority and the Private Sector Foundation among others.

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