Restructuring loans: Banks open to talks due to Covid-19

Commercial banks, under Uganda Bankers Association, have said they are open to discussion in regards to a suggestion to restructure loan payments at a time when effects of Covid-19 are starting to manifest.

Speaking in an interview yesterday, Mr Wilbrod Owor, the Uganda Bankers’ Association (UBA) executive director, told Daily Monitor they had already had engagements with the Ministry of Finance and Bank of Uganda about the same matter, noting they will await guidance from the central bank on the way forward.

“We are open to discussion. We will wait for guidance from the regulator [Bank of Uganda] and any engagement with the President or Minister of Finance. But we have already engaged the Minister of Finance on this and BoU. Let us wait and see,” he said, noting as the first point of contact, they would wait for central bank to guide on any discussion.

While addressing Ugandans on Monday, President Museveni, without giving details, said government would engage banks to restructure loan payments, especially at a time when many Ugandans are not working.

“You cannot take people’s property when they are not working. We are going to engage banks on the issue of loans,” he said, noting that government would also engage other companies such as Umeme and National Water and Sewerage Corporation to see how bills can be differed until the situation normalizes.

The Covid-19 pandemic has created a lot of uncertainties with the public calling on commercial banks to restructure loan payments at a time when many companies have suspended work and set most staff home.

Source: Daily Monitor

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