The Big Story

Bank of Uganda’s move to limit loans exposure to real estate gets mixed reactions from sector players

by Muhereza Kyamutetera
Bank of Uganda’s Tumusiime Mutebile and Dr. Twinemanzi Tumubweine. By limiting lending to the real estate sector but continuing to ease down on the CBR, is the central bank giving with the right and raking with the left?
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In a bid to limit over exposure to the real estate sector amidst what the central bank calls a potential “double-digit decline in real estate valuations” Bank of Uganda, last week, directed all lenders under its jurisdiction to limit their Loan to Value Ratio (LTV), for residential mortgages and loans for land purchase to a maximum 85 per cent. In a June 1st circular to CEOs of all Commerci

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About the Author

Muhereza Kyamutetera is the Executive Editor of CEO East Africa Magazine. I am a travel enthusiast and the Experiences & Destinations Marketing Manager at EDXTravel. Extremely Ugandaholic. Ask me about #1000Reasons2ExploreUganda and how to Take Your Place In The African Sun.