News dalla rete ITA

19 Luglio 2019

Uganda

UGANDA- AGRICULTURAL CREDIT FACILITY WRITES OFF SHS9.4 BILLION

Fifteen loans valued at Shs9.4b financed under the Agricultural Credit Facility (ACF) were due for write off as at March 31, 2019. The facility indicated in the 2019 agriculture finance year book published by Economic Policy Research Centre that about 2.8 per cent of its total loan books was due for write off. “Fifteen (15) loans were due for write-off as at March 31, 2019. These accounted for Shs9.48b or 2.86 per cent of the total [facility] loan portfolio,” the report reads in part. One of the 15 loans was acquired by a Sacco, which had rallied up about Shs18m. Loan write off is when a bank removes a loan from its balance sheet when a debtor fails to pay after considerable amount of time. According to Ms Rosette Bamwine, the head credit and marketing, ACF under Bank of Uganda, the facility was established without the requisite statutory instrument that would allow it, as a government project to write off loans. “Government’s auditor general procedures do not adequately cater for periodic loan write off. Consequently, government’s failure and delays in settling participating financial institutions’ (PFIs) claims for loan losses have discouraged some from participating,” she noted in the report. The ACF (and other credit guarantee programmes operating in the country), she said, require a regulatory framework suited to guarantee-type activities, which differ considerably from lending.ACF is funded partly by government contributions and PFI with varying percentages depending on the tier of the PFI.  (ICE ADDIS ABEBA)


Fonte notizia: Daily Monitor