Interest on Loans Will Still Count During Payment Holiday
Bank of Uganda has explained that interest on loans will still count even when you have been granted a loan payment holiday during the restructuring in the coronavirus crisis.
Speaking through a webinar with the Rotary Club of Kampala South on Monday evening, Dr Tumubwine Twinemanzi, the BOU executive director for supervision, said banks have to earn interest on the at money they lent out even when payments are frozen during the coronavirus crisis.
Last month, the Central Bank announced that banks can restructure loans to help borrowers go through the COVID-19 crisis.
This means a borrower can be given a time when they don’t have to make payments until when their businesses are working again.