President Museveni delivering the State of the Nation Address at Kololo Independence Grounds/ Parliament photo
President Yoweri Museveni has decried the high interest rates charged by financial institutions, noting that he has directed the Ministry of Finance to cap interest rates charged by money lenders.
Giving his State of the-Nation Address at Kololo Independence Grounds on Thursday afternoon, the President said the situation of the inexperienced and careerist minded leaders who thrive on corruption, is complicated by the blood thirsty parasites in the form of the unregulated money lenders who charge extortionate interest rates from these desperate political actors when they come to borrow money for unuseful expenditures.
“I have already directed the Minister of Finance to cap the interest rates chargeable by money lenders. The inflation rate in Uganda is 3%. Why should the commercial Banks charge 20% interest? How about the money lenders charging 36% or more? This is pure extortion,” said Museveni, adding: “The PDM and Emyooga funds are going to become the poor people’s banks, able to lend at 12% or less after 24 months. I have already directed the Attorney General to guide the Minister of Finance as to how he can criminalize this extortion.”
