Financial institutions asked to make borrowing more affordable
By Moses Ndhaye
Financial institutions have been asked to make borrowing more affordable to help support their clients with businesses entities that have been severely affected by the COVID-19 pandemic.
According to Stanbic Bank’s Chief Finance Officer Samuel Mwogeza, one of the ways to achieve this is by reducing interest rates which currently average at 21%.
He is optimistic that with such innovations, the country’s economy will quickly register a steady growth.
Mwogeza was speaking at the launch of a 3-month campaign code named “Now-Now Loans”, where the bank has reduced interest charged on loans to 15.9% to help their customers boost growth of their battered businesses.
According to the Uganda Investment Authority, SMEs make up about 90% of the private sector and are directly linked to over 80% of manufactured output.
