Ugee

“The objective of recapitalising PostBank is to open up more branches so that small-and-medium scale entrepreneurs can access loans in order to grow their businesses,” Fred Omach, the finance state minister, explained.

“The small-and-medium scale firms could also utilise the money to expand and create business linkages with both the transnational corporations,” the minister explained.

The minister said to support the growth of small-and-medium enterprises, the Government lifted a moratorium on establishing new banks. This has brought in eight new commercial banks.

“We have recapitalised Uganda Development Bank with sh5b, while interest rates earned by financial institutions on loans granted to persons engaged in agriculture are exempt from tax,” Omach said.

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