Traders want Banks to go easy on affected borrowers

 Traders in Kampala want banks to ease loan repayment conditions to borrowers whose income streams have been affected by the global COVID-19 pandemic.

The chairperson of Kampala City Traders Association (KACITA), Mr Everest Kayondo has asked the Ministry of Finance and Central Bank to engage with local banks in a bid to come up with measures to mitigate the economic impact of the pandemic.

With the global pandemic expected to affect businesses and their revenue streams, he said, banks should ease loan repayment terms and conditions for borrowers affected.

This Mr. Kayondo said, is likely to minimise the implications of the coronavirus outbreak on sustainability of firms and an attempt to facilitate survival.

Uganda is yet to register any coronavirus case but government has since ordered for closure on schools, public gatherings, restricted travels among others.

Among the sectors want the eased loan repayment include operations within the service industry such as tourism, hospitality sector, logistics and transport among others.

“The restructuring of loans and ease of loan repayment will also allow firms to keep supply and value chains open by re-investing the returns from their revenue,” he said.

Kayondo also believes that once done, the move will see the country maintain supply of goods and products necessary for consumption.

Meanwhile, tenants have also asked government to order landlords to waive rent charges— claiming their incomes have been cut short by the pandemic.

Leave a Reply

Your email address will not be published. Required fields are marked *