Legislators on Parliamentary Finance Committee have refused to approve the Central Bank’s request to have shs 484 billion as recapitalization.
The MPs further reduced the 484 billion to shs 200 billion on grounds that the figure wasn’t justified.
The committee’s chairperson Henry Musasizi told Parliament that in 2017 Bank of Uganda had been given shs 100 billion wondering how the 484 billion figure had been drafted.
He said the figure is “ambiguous.”
“Whereas the bank needs to be capitalized from time to time to maintain a sound capital base, the Committee found an increase from Shs100bn to Shs484.21bn representing an increment of 384% in a period of 2 years unjustified. The Committee noted the need for gradual and consistent increments in budget allocations for capitalization of the bank,” Musasiz noted.
Musasizi wants the comment to support the recommendation of reallocating the 284 billion to other sectors.
