LEADERS CALL FOR FRIENDLY AGRICULTURAL INTEREST RATES ON LOANS

By Joseph Abiria

Arua

A section of leaders from west Nile region have  provoked the management of bank of Uganda to consider extending agricultural credit facility loans to people of the region at affordable interest rates.

The leaders particularly emphasized on the high interest rates levied by commercial banks to borrowers. Bank of Uganda has ear marked 880 billion shs under the agricultural credit facility loan.

The loan is mainly extended to progressive farmers for social economic transformation. The money is borrowed from bank of Uganda at an interest rate of 12% per annuum. 

While interfacing with stake holders, Christine Ayikoru a resident in arua city decried the interest rates charged by micro financial institutions.
The interim chairman of arua chamber of commerce Censor Draecabo observed that west Nile region does not have a competitive advantage over other regions in economic terms and visibility.

The scope of doing business in the region has now taken a different twist, the deputy resident district commissioner arua Ezama Ham Mizamil questioned the credibility of bank of Uganda in regulating operations of micro financial institutions.” We have so many lending institutions in town, others are operating on varendors and they are charging 25%, 20%.

In response, the deputy director of bank of Uganda, Alex Lwanga indicated that interest rates are determined by the market forces of demand and supply where supply is the economic driver in doing business.

Bank of Uganda is advancing a maximum of 2.1 billion shillings to potential individuals and companies for capital expenditures and other agricultural projects.

COVER PHOTO: Participants during an engagement at desesrt breeeze Hotel By Joseph Abiria