By Silvia Nyambura
Borrowing across Uganda’s commercial banks is bound to decrease following the monetary policy intervention made by Bank of Uganda. Earlier this week BOU increased the Central Bank Rate (CBR) to 16% meaning banks have to hike their interest rates. However, according to NC Bank Managing Director John Okulo, credit to the private sector is growing and customers who borrow long term for major investments will sustain Banks’ business. Addressing the media at the Kampala Sheraton this afternoon, Okulo explained lending will always be risky but it is part of Banks’ core business and must therefore be done.
“As a bank we understand a rise in interest rates is a major concern for our customers. Currently, our interest rates stand at 21.5% but will go up to 24% in the next 2 weeks. Our aim is to develop long term relationships with clients despite the conditions. Through various interactions, we can negotiate on the funding structures as well as payment periods,
