National
Traders, Museveni fail to agree on loans
Most shops remained closed as traders continued a strike over high interest rate on loans. Photo by Stephen Otage
Posted Friday, January 13 2012 at 00:00
Meanwhile, for the second day running, traders held to their guns even after the President asked them to open shops with immediate effect as he seeks to deal with the matter.
He repeated the same call in yesterday’s meeting with traders, but it remains unclear whether the traders will budge.
By press time neither Mr Kayondo nor Mr Ssekitto were picking up their mobile phones despite repeated attempts to reach them. Business remained pretty much slow in down-town Kampala as most traders continued to close their shops in protest.
Police and other security forces also continued to trek all over Kampala, with heavy deployment in busy Central Business, where the strike seemed more effective.
Retailers, buyers stranded
Striking traders were largely peaceful. Most of them were engaging each other in casual talk, as others played board games. Customers were stranded too. Many thought shops would be opened today.
Mr Hassan Ssali needed to purchase electrical equipment, but he could not because his supplier had closed shop, while one Zubair needed to supply orders to South Sudan but he too failed because his supplier was on strike.
Banks with a presence around Kikuubo and Owino Market, both hubs for wholesale and retail trade, did not open save for Equity Bank.
iladu@ug.nationmedia.com
-
The sad truth is, that the interest rates which are demanded by banks are nothing but the naked reallity. The real inflation is still increasing, only government tries to cover this with some little tricks like selling foreign currencies from their reserves, etc. But this can only help temporarily to hide the reallity. The truth comes out as soon as government stop this cheating. Banks know about those practices and can't collaborate in such.
-
Dear Ugandans Demonstrations are not appropriate answers to problems or issues! Please resort to dialogues! "In business u invest to make profits!! When you demonstrate you lose even what u have been having expecting to be heard and then profits" This does not make sense!! Just imagine the loses you and the countyz economy incureed during the demo days, losses spilling to other stake holders, foreign business partners and far beyond the borders of Uganda! What if your business partners shift their business to other countries where business people are serious unlike the demo minded ones!! UBSURD!!
-
I would like to be educated here. What would happen if inflation Or CBR dropped below the rate loans were issued to customers? Would banks reduce the interest on the old loans given at high inflation/ CBR rates? I think the action of banks on old loans is broad day light theft and the government is condoning this. Can this be challenged in court since there are loan contract?
RSS