Uganda Bank to write off sh450m Owino debt

Monday, 8th August, 2011

FINCA, a local microfinance institution, plans to write off over sh450m worth of loans advanced to clients, whose merchandise was destroyed by fire that recently razed St. Balikuddembe (Owino) market.

The development will mitigate the loss magnitude and enable traders get back into business.

The institution’s chief executive officer, Julius Omoding, said over 250 clients suffered losses, prompting the ongoing negotiations with insurance companies to have the victims compensated.

“We regret the losses you incurred because of the fire accident. However, all loans we advanced to you will be paid by the insurance company,” he said.

He was addressing traders during a meeting last week at FINCA’s head office on Ben Kiwanuka Street.

Officials from CHARTIS, an insurance company providing FINCA with loan insurance, attended.

“Affected clients are advised to consult our branches around the country for detailed information on how to qualify for the compensation,” Omoding said.

John Bosco Kalema, the CHARTIS manager in charge of production and accidents, said genuine claims would be settled within the shortest time possible.

“We are working out modalities to enable you offset some of the losses. We ask you to be patient as we take the necessary steps to settle your claims,” he said.

Kalema told journalists that in 2009, CHARTIS paid over sh1.25b worth of claims from over 10 financial institutions, whose clients lost merchandise during a fire in the same market.

By David Ssemijja: The New Vision Newspaper