BOU Orders Banks To Postpone Loan Repayment.

The Bank of Uganda has granted permission to commercial banks and other financial institutions to restructure loans of corporate and individual customers affected by covid-19. According to the banks governor Prof Tumusiime Mutebile, the restructuring of the loans involves a postponement on loan repayment for borrowers at the will of the institutions for up to 12 months effective 1st April, 2020. Mutebile has also directed all its supervised financial institutions to defer payment of all optional distributions such as dividends and bonus payments for at least 90 days effective March, 2020 depending on the evolution of the covid-19 pandemic. He meanwhile says the pandemic has seen a depreciation of the Ugandan shillings against the US Dollar by 2.2% between February and March, 2020. The governor has however pledged to monitor the current situation and the evolving market and macroeconomic conditions in case of any additional liquidity support if need arises. -

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