Uganda’s Central bank says that no License is Needed for Foreign Lending
Uganda’s central bank said on Wednesday
foreign-based banks do not need its license to lend funds originating abroad,
reassuring an industry jolted by a court ruling last week that declared some
syndicated loans involving foreign banks illegal.
The loans affected by the Commercial
Court ruling represent at least $1.5 billion worth of debt, according to an
industry body.
The Bank of Uganda said it did not
regulate lending that involved “using funds obtained from foreign banks that do
not take deposits from the public in Uganda.”
“Foreign banks lending deposits held in
jurisdictions other than Uganda are regulated and supervised by their home
authorities,” it said in a statement. “It is not mandatory for a foreign bank
to establish a representative office in Uganda in order t...