President Museveni Pledges support to Micro finance Institutions

President Yoweri Museveni has promised government support to microfinance institutions in the country so as to promote saving culture among people.

During the launch Women Microfinance at Kinoni in Lwengo district yesterday president Museveni said that a big number of micro finance institutions are charging their clients high interest rates because they borrow money from commercial banks that target profits from borrowers.

Museveni’scommitment is in response to concerns raised over a 30 percent interest rate charged on loans offered by a women saving microfinance that he launched.

While addressing residents after launch, the president said this can be addressed by the central bank giving out money directly to microfinance institutions without passing through commercial banks.

Lwengo district chairperson George Mutabazi says that the launched micro finance bank has helped promote saving among women groups in the area.