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Museveni Tells Banks To Stop ‘Foolish Lending’, Says Directive Against Eviction Of Bonafide Bibanja Holders Still Stands

President Museveni (in white shirt) in a group photo with Uganda Bankers’ Association members at State House Entebbe yesterday

President Yoweri Kaguta Museveni has urged banks to lend cautiously.

“On the issue of land evictions, I’d like to clarify that if a bank foolishly or in connivance with tricksters accepts to lend money against land which is occupied with bonafide bibanja holders, my directive against eviction still applies,” Museveni said, adding: “If however there is no such encumbrance, and a borrower defaults on payment, the recovery process of the lender is legitimate and should be enforced.”



The President yesterday met the Uganda Bankers’ Association members at State House Entebbe, where bankers informed him that they have aligned their operations to the National Development Plan through support to Agriculture, Manufacturing and Export promotion.

“In the past, these good people have been conduits of the haemorrhage of African purchasing power, through spending to import consumer goods. So, the awakening to our economic needs is a welcome development,” Museveni said via his official twitter handle.

He added: “On our part, the Ministry of Finance has elaborated a number of interventions to mitigate some of the challenges of the Association,  including disciplinary action against accounting and public officials who have vulgarized some technical processes in order to defraud the gov’t.”

Museveni has over the years castigated banks over high interest rates. He has regularly said commercial banks are not pro-development since they are focused on only making profits.



 

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