Uganda Business News: Minister appeals for low interest rates
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First published: 20081124 7:20:00 AM EST
Ultimate Media
The minister of state for finance Fred Omach has appealed to financial institutions especially commercial banks to lower their interest rates so as to stimulate borrowing which leads to high economic growth.
To enable people access low interest loans and set up income generating projects aimed at reducing poverty, government is encouraging the setting up of Savings and Cooperative Credit Organizations (SACCOs).
While speaking at the inauguration ceremony of Fina Bank in Kampala recently, Omach promised government support in setting up better infrastructure like roads and electricity to enable the banks operate more effectively.
He also cited the over 20 industrial zones government is putting up to create more jobs and empower people to widen their incomes from which banks can tap into by providing financial services.
The Executive Director Supervision - Bank of Uganda Justin Bagyenda appealed to commercial banks to enhance Uganda’s financial stability by ensuring that they manage their risks very well to avoid causing a financial crisis.
The current global financial crisis was caused by risky loans given out by US banks.
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