The BoU Executive Director for Research, Adam Mugume says that for now, the economic growth is expected to be slower by 0.5% unless the pandemic worsens in the short term.
Seventy-five-year-old Bicentina Alal and her 80-year-old husband Tito Okema, have been saving money in a metallic case for over three years. The couple lives with their six grandchildren in Kali-Kali Village in Rec Iceke Parish in Layima Sub County, which is about 50kilometers away from Gulu City Centre.
Dr Adam Mugume, the Executive Director for Research Bank of Uganda says that banks incur expenditures to offer services and there is a justification for users of these bank services to contribute to the running costs.
Bank of Uganda’s Executive Director for Research, Dr Adam Mugume says if the 2021/2022 budget proposals are passed, the total outstanding debt of the country will rise to Shs86.9 trillion, which will be 52% of the GDP.
The legal Committee of Parliament has rejected a proposal to have the Deputy Governor Bank of Uganda (BoU) serve for a maximum two terms of 10 years while the Governor’s term is unlimited.
“BoU will extend for six months effective from 1st April 2021 the Credit Relief Measures (CRM) and also maintain the Covid-19 Liquidity Assistance Program (CLAP) to supervised financial institutions.
BoU will review CLAP from time to time as the pandemic evolves to ensure viability of solvent supervised financial institutions that may come under liquidity stress during the pandemic and to support credit extension”, said Deputy Governor, Michaeil Atingi-Ego.
The Central bank is worried for the financial sector and the economy as a whole, because the relief measures were temporary and soon, the borrowers will bear the cost of repaying the loans.
Tumubweine also says the government will have to increase its borrowing from the domestic market because of the big budget financing gap left by the local revenue mobilization and the external sources.
In the 10th edition of the Agriculture Finance, Year Book developed jointly by the Ministry of Finance, Planning and Economic Development, the Bank of Uganda and the Economic Policy Research Centre, the focus is on the small agriculture entrepreneurs.
The economies of Ethiopia, Uganda, Ivory Coast, Egypt, Ghana, Rwanda and Kenya withstood the economic impact of the pandemic so successfully that they were among the world’s 10 fastest-growing in 2020. At least five of them are expected to remain in that elite growth club through 2022, according to forecasts by economists compiled by Bloomberg during the past three months
The MPs led by the Kampala Central MP Mohammed Nsereko point out that businesses have been financially crippled by the COVID-19 lockdown and deserve a major bailout in order to stay afloat.
Kwagala, one of the complainants says the company paid the promised 5 per cent interest on the fixed deposit account for the first few months before cutting it by half. She has since failed to even withdraw the principal amount, which brings the total to about 190 million Shillings.
However, the Central Bank says a foreign bank can choose to contract a person or company as their agent in Uganda using the general contract laws. Under this, they are not required to get approval from the Bank of Uganda. “Such agencies do not fall within regulated agency under the FIA, 2004 and do not require a BoU license”, it says.
Fort Portal City Mayor, Rev Willy Kintu Muhanga adds that due to lack of guidelines; he has not yet formed an executive committee that would implement council resolutions. According to Muhanga, the operationalisation of Fort Portal city led to the immediate closure of Fort Portal municipal bank accounts.
The Minister of Finance Matia Kasaija has announced the deferring of taxes worth 129.4 billion as a short term emergency relief to businesses due to effects of the Corona virus pandemic.
The Registrar for the High Court Execution Division, Isah Serunkuma issued the first garnishee orders on November 20, 2019. The order stemmed from a miscellaneous application filed by 13 Mulago Paramedical students who in 2011 sued Government over the delayed award of their diplomas and certificates.
Martine Erimu, the chairperson of the Teso Grain, Rice Millers, Processing and Marketers Association- TEGRIMMA, says some financial institutions limit farmers when borrowing but are fast in collecting the money.
Nandala also told Kagole that the documents show that just in a space of one day, he withdrew another Shillings 29.8 million on June 29th, 2018 for the alleged travel of the Chief Justice to South Africa and questioned how the Chief Justice would travel to two destinations at the same time.
In his presentation on Tuesday evening, the Finance Committee Chairperson, Henry Musasizi explained that the Bank of Uganda Act, 2000 provides that government is authorized to issue securities for recapitalising BOU where its capital impaired.
In a statement issued on Tuesday, the BoU Governor, Emmanuel Mutebile said: "The public is advised to accept only those notes that bear features as designed by Bank of Uganda."
