The Ministry of Education and Sports has asked commercial banks to stop demanding loan payments from private school owners amid the covid-19 crisis.
The development comes in a period when owners of private schools who had acquired loans from banks are asking for help government as banks move to take over their properties for failing to pay back the loans on time.
Due to Covid-19 outbreak in Uganda, President Yoweri Museveni in March suspended operations of all learning institutions, a move which has greatly affected the cash flow of private schools, thus failing to pay back on time the loans they had acquired to run the institutions.
According to the Ministry of Education, schools may not be opened soon and banks have been asked to desist from pressurizing owners of schools to pay their loans since the institutions have not been operational for over four months.
The State Minister for Higher Education John Chrysostom Muyingo told this website, “Banks have been pressurizing private school owners to pay their loans yet their schools have not been operating for some months, so we have asked them to stop demanding loan payments till further notice. When schools open, we want owners to run their them in a peaceful way without any pressure until we shall say now let them start paying back their loans.”
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