From Saturday Monitor
The growth of Shilling denominated loans has finally taken over foreign denominated loans after two years.
Following the high interest rates charged by commercial banks and financial institutions, especially on the Shilling denominated loans that rocked Uganda’s credit market, borrowers decided to switch to foreign currency denominated loans which they saw was relatively cheaper compared to the shilling denominated loans.
The executive director of research at Bank of Uganda, Dr Adam Mugume, said those who were borrowing in the foreign currency have reduced because of increasing costs of servicing such loans. “To continue borrowing in foreign currency denominated loans means that one’s earning should al so be in Dollars; this applies to those in the export business,” Dr Mugume explained.
Read more Monitor.co.ug.