KAMPALA – Bank of Uganda has kept the Central bank rate (CBR) at 7 per cent for the month of August amid slow economic recovery over coronavirus.
BOU Governor Emmanuel Tumusiime-Mutebile on Monday said the CBR indicates the direction of interest rates and with this BOU expects commercial banks to provide more money to Ugandans so that they can spend.
It warns that increasing Non-Performing Loans (NPLs) and high lending interest rates could delay recovery of loan extensions to pre-COVID levels.
Mutebile is, however, optimistic that economic growth could turn out stronger than projected if the spread of the virus is contained, or if a vaccine or effective treatment is available earlier than is currently being assumed.
He said the economy in 2020/21 is projected in the range of 3...
Central Bank has insisted they will appeal the case against property magnet Sudhir Ruparelia to the supreme court after the same was dismissed in the Court of Appeal.
Central Bank has sued Sudhir for accusing him of using his Meera Investments company to siphon Shs397b from the coffers of his own Crane Bank.
However, Court led by Deputy Chief Justice Alfonse Owiny-Dollo unanimously dismissed the case with costs after finding no evidence in Central Bank’s allegations.
In a statement by governor Emmanuel Tumusiime Mutebile on Tuesday, the Central Bank insists that receivership does not take away the corporate personality of a company which includes the right to trace and recover assets and the right to sue for those assets.
Central Bank maintains Sudhir wrongfully and illegally ...
The central bank is laying groundwork for a fresh start in a
move that seeks to avert recurrence of mistakes in the liquidation and
sale of commercial banks in distress.
resolution of financial Institutions in distress has been under the
supervision department, BoU has now commenced discussions with the
Finance ministry on the feasibility of separating supervision function
and resolution roles. The plan is to determine the best agency to handle
banks in distress.
The House committee that
investigated irregularities in the closure of seven commercial banks
last year, had recommended that the mandate of resolving financial
institutions in distress be separated from the BoU supervision function
in order to mitigate the risk of conflict of interest. Finance
The December 2019 auditor general’s report has named Bank of Uganda as the most loss-making company in Uganda.
The report whose authoring was overseen by Auditor General, John
Muwanga highlighted that in comparison to the previous year, 13
enterprises posted improved (increased profits or reduced loss)
performance, with Uganda Electricity Generation Company, Uganda Property
Holding and Civil Aviation Authority registering over 300% percentage
On the other hand, Uganda Development Corporation, Uganda Air Cargo
Corporation and Bank of Uganda posted losses for the year from profit
positions in the previous year with a reduction in performance of over
According to the breakdown, Bank of Uganda made losses to a tune of
Shs855,582,000,000 up from the Shs424,113...
Central Deputy Governor Dr. Louis Kasekende whose contract President
Museveni declined to renew has finally bid an emotional farewell to
staff as appointing authority starts to implement COSASE
In an emotional statement, Dr. Kasekende who has worked at Central
Bank for over three decades in various capacities thanked President
Museveni for the appointment.
“As you already know, my contract as Deputy Governor of Bank of
Uganda came to an end on January 14, 2020. It has been a great honor to
serve in the position of DG for the last 10 years,” he wrote.
Dr. Kasekende: “I also thank the various Ministers of Finance,
Governors and the Board of Directors of the Bank for the support over
the many years I have served the Bank.”
“Last but not least, I would li...