Members of Parliament want commercial banks to relax and reschedule loan
repayment periods for borrowers for at least 90 days in the wake of the COVID -19 pandemic.
Addressing a press conference today at Parliament, the MPs
want Government to come in with intervention measures on helping the citizens after
it came out with strong restrictions against gatherings and movements.
According to the Kampala Central MP, Muhammad Nsereko, as
Uganda shuts its borders and asks people to remain home, in order to achieve
social distancing, the best thing to do is to have the central bank and other banks to
reschedule loan repayments as people will not be making profits in one and a
Loan rescheduling isrestructuring
the terms of an existing loan or bond in
order to extend the repayment period. He says specifically people in production need to be helped.
He says this will help the Ugandans who have borrowed huge
chunks of money but are facing the crisis of the COVID -19. MP Nsereko says Government should
provide immediate term solutions to Ugandans after a serious lock down which has
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Nsereko also says that Government should look at the way
other countries are supporting their people, through giving them incentives
and other interventions like exempting
people from some taxes during this Coronavirus crisis period.
Nsereko also wants among other things Government to
intervene in the utility companies like Power company UMEME and National Water
and Sewerage cooperation not to charge people in this period, as people are
home and not making money.
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He also says there should not be eviction by landlords
since people are not working.
Allan Ssewanyana, the MP Makindye West MP says the measures
Government put are so good, but they could affect citizens badly.
He says businesses in Kampala are informal, and the orders
given by the President affect those people, like bars which has instead affected
workers like waiters and waitresses. He
says if the pandemic continues, Government should prepare for worse.
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So far 350,000 people worldwide have tested positive for
COVID -19, while 15,000 have reportedly died. However, 100,000 people have also
recovered. Uganda registered its first case of the virus on Sunday night.