Members of Parliament want commercial banks to relax and reschedule loan repayment periods for borrowers for at least 90 days in the wake of the COVID -19 pandemic.
Addressing a press conference today at Parliament, the MPs want Government to come in with intervention measures on helping the citizens after it came out with strong restrictions against gatherings and movements.
According to the Kampala Central MP, Muhammad Nsereko, as Uganda shuts its borders and asks people to remain home, in order to achieve social distancing, the best thing to do is to have the central bank and other banks to reschedule loan repayments as people will not be making profits in one and a half months.
Loan rescheduling isrestructuring the terms of an existing loan or bond in order to extend the repayment period. He says specifically people in production need to be helped.
He says this will help the Ugandans who have borrowed huge chunks of money but are facing the crisis of the COVID -19. MP Nsereko says Government should provide immediate term solutions to Ugandans after a serious lock down which has affected everyone.
Nsereko also says that Government should look at the way other countries are supporting their people, through giving them incentives and other interventions like exempting people from some taxes during this Coronavirus crisis period.
Nsereko also wants among other things Government to intervene in the utility companies like Power company UMEME and National Water and Sewerage cooperation not to charge people in this period, as people are home and not making money.
He also says there should not be eviction by landlords since people are not working.
Allan Ssewanyana, the MP Makindye West MP says the measures Government put are so good, but they could affect citizens badly.
He says businesses in Kampala are informal, and the orders given by the President affect those people, like bars which has instead affected workers like waiters and waitresses. He says if the pandemic continues, Government should prepare for worse.
So far 350,000 people worldwide have tested positive for COVID -19, while 15,000 have reportedly died. However, 100,000 people have also recovered. Uganda registered its first case of the virus on Sunday night.