Traders want banks to embrace local languages for transactions

Traders have urged commercial banks to embrace local languages citing that the majority are semi-illiterate people who cannot satisfactorily write or even speak the official English language. The traders also want commercial banks to explain clearly why interest rates are ever changing.

This was disclosed by Everisto Kayondo, chairman Kampala City Traders Association (KACITA) during a stakeholder meeting with banks about underlying issues with different players in the banking industry.

 Kayondo said "As traders we want commercial banks to be flexible and use local languages so that our traders know better the products. Some of us sign documents which we do not understand and in the process, some commercial banks officials exploit the traders' ignorance," said Kayondo

He called upon bank officials to remain impartial when guaranteeing loans to the traders who rely on them for business growth.

The Chairman Uganda Bankers' Association (UBA) Fabian Kasi told the traders that the official language for transaction is English. However, he said they would make arrangements and reflect on the possibility of using local languages to cater for the semi-illiterate people.

He said "As commercial banks we have toll free lines where people can freely express themselves in languages of their interest."

About the interest rates, Kasi explained that commercial banks determine interest rates based on the Central Bank Rate (CBR). He said if Bank of Uganda raises the CBR rate, borrowers will have to pay a little higher rate.

Emmanuel Kikoni executive director at UBA urged commercial banks to strengthen ties with traders through being open about issues they raise.

"We appreciate this partnership with the traders and call upon all stakeholders to embrace dialogue so that commercial banks continue operating in the current financial market," said Kikoni