Demand for credit grew in value terms to Shs8.70 trillion in December 2023 from Shs6.03 trillion in October 2023, the Bank of Uganda has said in its Monetary Policy Report for December 2023.
“Supply over the same period also grew to Shs5.10 trillion from Shs3.87 trillion,” BoU says, adding: “Total credit extensions have increased to Shs4.30 trillion from Shs4.28 trillion while recoveries remained unchanged at Shs 3.89 trillion.”
The report adds that the stock of private sector credit grew by less by 8.5 percent down from 8.9 percent, excluding exchange rate effects and capitalized interest.
BoU says the weighted average shilling and foreign currency lending rate remained stable partly due to the tight liquidity conditions, The shilling lending rates averaged 18.8 percent, while the foreign currency lending rate averaged 9 percent.
