• Contact Us
  • About Us
  • Advertise
  • Donate
  • Login
Watchdog Uganda
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News
No Result
View All Result
Watchdog Uganda
No Result
View All Result

Covid-19: BoU gives commercial banks 8 guidelines to protect customers who have loans

Stephen Kalema by Stephen Kalema
5 years ago
in News
23 1
ShareTweetSendShare

Bank of Uganda has issued eight guidelines to all Chief Executive Officers of commercial banks, Credit institutions and Microfinance Deposits Taking institutions on how loans restructuring and Credit relief must be done during Covid-19 period.

In a document issued by acting Deputy Governor Bank of Uganda (BOU) Adam Mugume on 14th April it’s now evident that Covid-19 outbreak has affected the financial health of corporate entities and households across all sectory of the economy, and impaired the ability of borrowers to meet their debts obligations.

“This is a threat to the stability of the financial sector. During this period of uncertainty, it is essential that the financial intermediation processes go on and that credit is available to support otherwise viable commercial entities that are central to keeping Uganda’s economy running,” he said.

According to Mugume the guidelines are in effect for 12 months with effect from April 1st 2020 and shall be applicable only to credit facilities not classified as losses by 31 March 2020.

Mugume emphasised that the said guidelines are not applicable to any credit facility granted after 1st April 2020.

The guidelines are directed at all Supervised Financial Institutions (SFI) within the regulatory jurisdiction of the Bank of Uganda.

Here are some of the guidelines

1 In the 12 month period with effect from 1st April 2020, maximum of two (2) restructuring is allowed for any credit facility, irrespective of the number of times it has been restructured in the past.

2. Payment of arrears as a pre-condition for restructuring is temporarily suspended during this 12 month period. However, SFIs are allowed to capitalise and recover these unpaid arrears.

3. A borrower, whose credit facility benefits from a restructuring in this 12 month period, may be liable for only the legal fees and stamp duty associated with the restructuring.

4. The event of restructuring of credit facility arising from the direct or indirect impact of Covid-19 pandemic shall not be treated as an adverse change in the credit risk profile of the borrower nor shall it be reported to a Credit Reference Bureau (CRBO) as such;

5. SFIs shall still be required to assess the potential unlikeliness to pay of borrowers subject to any form of restructuring, in accordance with the policies and practices that they usually apply to such assessments.

6. Consumer protection remains a regulatory priority and SFIs shall ensure full disclosure and act in the interest of customers, with no hidden charges.

7. Borrowers may request their SFI for restructuring if they so qualify. However, it is allowed for SFIs to make unsolicited offers for a restructuring to their customers during this 12 month period.

8. SFIs intending to provide credit relief under these guidelines must have in place a policy for the implementation of the said guidelines. In addition, SFIs are individually responsible for the decision on whether or not to extend the credit relief mentioned herein to their customers and similarly for compliance with these guidelines.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
Share5Tweet3SendShare

Related Posts

News

Uganda Woos UAE Investors with Vast Opportunities in Agriculture and Tourism

1st July 2025 at 20:07
News

Born To Cry: The Tragic Reality of Birth Asphyxia In Uganda As Government Launches My Baby’s Cry Campaign

1st July 2025 at 19:46
Business

Victoria University Strengthens Ties with Busoga Kingdom Through Educational Partnership

1st July 2025 at 13:40
Next Post

FARIDAH NAKAZIBWE: In this quarantine, what used to seduce and make us happy no longer excites us

  • Prostitution in Uganda- Courtesy Photo

    10 dangerous hotspots known for prostitutes in Kampala

    1100 shares
    Share 440 Tweet 275
  • LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

    2282 shares
    Share 913 Tweet 571
  • Uganda’s Billionaires 2025: Once Again Sudhir Ruparelia Leads a Resilient Pack

    39 shares
    Share 16 Tweet 10
  • Pastor Bugingo Seeks Reconciliation with Teddy and Children, Prays for Makula’s Twins

    18 shares
    Share 7 Tweet 5
  • LIST : Gov’t releases Revised Salary Structure for Teachers, Police, and Prisons Staff for FY 2024/2025

    112 shares
    Share 45 Tweet 28
Facebook Twitter

Contact Information

Watchdog Uganda is a portal for solution journalism, trending news plus cutting edge commentaries in the fields of politics, security, business, tourism, entertainment, technology, agriculture, climate change, environment, public health et al. We also give preference to Ugandan community news and topical discussions. The portal also publishes community news and topical discussions.

Email: editorial@watchdoguganda.com
To Advertise:Click here

Latest News

Uganda Woos UAE Investors with Vast Opportunities in Agriculture and Tourism

1st July 2025 at 20:07

Born To Cry: The Tragic Reality of Birth Asphyxia In Uganda As Government Launches My Baby’s Cry Campaign

1st July 2025 at 19:46

Check out

  • Trending
  • Comments
  • Latest
Minister Muruli Mukasa

LIST: New salary structure for civil servants starting July 2020 out; scientists, lecturers get juicy pay rise

24th May 2020 at 10:45
Pregnant woman

Shock as 17-year old boy impregnates his two sisters during Covid-19 lockdown 

17th June 2020 at 08:17
Sudhir Ruparelia is set to speak at business forum in United Kingdom

Billionaire Sudhir’s wisdom on how to invest in real estate

0

How a boy’s destiny turned from cotton grower to communications guru

0

Uganda Woos UAE Investors with Vast Opportunities in Agriculture and Tourism

1st July 2025 at 20:07

Born To Cry: The Tragic Reality of Birth Asphyxia In Uganda As Government Launches My Baby’s Cry Campaign

1st July 2025 at 19:46

© 2025 Watchdog Uganda

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • News
    • National
    • Politics
    • World News
    • Media Outreach Newswire
    • Africa News
    • Tourism
    • Community News
    • Luganda
    • Sports
      • Football
      • Motorsport
  • Op-Ed
    • #Out2Lunch
    • Conversations with
    • Politics
    • Relationships
  • Business
    • Agriculture
    • CEOs & Entrepreneurs,
    • Companies
    • Finance
    • Products
    • RealEstate
    • Technology
  • Entertainment
    • Lifestyle
  • People
    • Showbiz
      • Salon Mag
  • Special Report
    • Education
    • Voices
  • Reviews
    • Products
    • Events
    • Hotels
    • Restaurants
    • Places
  • WD-TV
  • Donate
  • China News

© 2025 Watchdog Uganda