NPART recovers sh45b from banks’ debtors
Apr 09, 2007
THE Non-Performing Assets Recovery Trust (NPART) has recovered sh45.5b from debtors of the former Uganda Commercial Bank (UCB) and the Uganda Development Bank (UDB).
By David Muwanga
THE Non-Performing Assets Recovery Trust (NPART) has recovered sh45.5b from debtors of the former Uganda Commercial Bank (UCB) and the Uganda Development Bank (UDB).
“As of February this year, we had recovered sh45.5b. Sh29b was from UCB debtors, sh13b from UDB debtors, while sh3.9b was from the 220 properties that we have been put up for sale,†the trust’s administrator, Julius Izimba, said.
He said sh65.4b is supposed to be recovered from the 2,500 UCB debtors, while the 330 UDB debtors are owed sh72b.
“This means we have recovered 44% from the UCB debtors and 18% from the UDB debtors,†Izimba said in an interview.
He said they had recovered 44% of the commercial bank’s debts because when the trust was formed, the interest on UCB’s loans had not accumulated much and the bank had reported first to them compared to UDB.
The lines of credit that were disbursed to the two banks between 1987 and 1988 were from the United States Agency for International Development, International Development Agency and the Arab Bank for Economic Development in Africa.
“The loans to UCB were assigned to NPART between 1995 and 1996 when they had just been accessed and interest stopped accruing, while for UDB, they were handed over in 2001 whose interest had accrued for five years,†Izimba explained.
He said if the trust hasn’t sold the properties by October when its contract expires, they would hand them over to the Uganda Land Commission.
THE Non-Performing Assets Recovery Trust (NPART) has recovered sh45.5b from debtors of the former Uganda Commercial Bank (UCB) and the Uganda Development Bank (UDB).
“As of February this year, we had recovered sh45.5b. Sh29b was from UCB debtors, sh13b from UDB debtors, while sh3.9b was from the 220 properties that we have been put up for sale,†the trust’s administrator, Julius Izimba, said.
He said sh65.4b is supposed to be recovered from the 2,500 UCB debtors, while the 330 UDB debtors are owed sh72b.
“This means we have recovered 44% from the UCB debtors and 18% from the UDB debtors,†Izimba said in an interview.
He said they had recovered 44% of the commercial bank’s debts because when the trust was formed, the interest on UCB’s loans had not accumulated much and the bank had reported first to them compared to UDB.
The lines of credit that were disbursed to the two banks between 1987 and 1988 were from the United States Agency for International Development, International Development Agency and the Arab Bank for Economic Development in Africa.
“The loans to UCB were assigned to NPART between 1995 and 1996 when they had just been accessed and interest stopped accruing, while for UDB, they were handed over in 2001 whose interest had accrued for five years,†Izimba explained.
He said if the trust hasn’t sold the properties by October when its contract expires, they would hand them over to the Uganda Land Commission.