Monday, July 26We Break the News

Tag: BANK OF UGANDA

BUSINESS: BoU maintains lending rate at 7% amid crawling economic recovery over Virus Pandemic

BUSINESS: BoU maintains lending rate at 7% amid crawling economic recovery over Virus Pandemic

Business, TECHNOLOGY, UGANDA
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...
UGANDA: BoU accuses Sudhir Ruparelia of stealing Crane Bank.

UGANDA: BoU accuses Sudhir Ruparelia of stealing Crane Bank.

AFRICA, Business, UGANDA
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 ...
UGANDA: BoU charts new path, Government unveils reforms

UGANDA: BoU charts new path, Government unveils reforms

AFRICA, UGANDA
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. Whereas the 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 min...
UGANDA: The Bank of Uganda made losses of UGX.855Bn-Report

UGANDA: The Bank of Uganda made losses of UGX.855Bn-Report

UGANDA
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 increase. 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 300%. According to the breakdown, Bank of Uganda made losses to a tune of Shs855,582,000,000 up from the Shs424,113...
UGANDA: Dr. Kasekende bows out of BoU, bids farewell to staff

UGANDA: Dr. Kasekende bows out of BoU, bids farewell to staff

AFRICA
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 recommendations. 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...
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