The central bank of Tanzania has denied reports that Barclays Bank Tanzania is being affected by the recent interest rate-rigging scandal that hit its parent company in Europe.

The Tanzanian local treasury experts told Tanzanians that they had all the reasons to worry over the problems Barclays Bank in UK went through.

The Tanzanian experts say that, though Bank of Tanzania denies the effects, the risk for local borrowers in Barclays Bank Tanzania is so remote.

They say that Tanzania is already suffering from the London interbank interest rate-fixing scam that haunted the operations of Barclays Bank abroad.

Sources told our investigators in Dar es Salaam that Barclays Bank Tanzania is affected by the problems its mother institution in UK faces because before it lends money it first looks  at among other factors, the operation of Barclays bank UK.

Many other Tanzania banks have in recent years resorted to borrowing from international money markets like Barclays UK.

The sources that did not want their names revealed because of the sensitivity of the matter told us that the government of Tanzania is paying some loans at rates based on wrong prices due to problems Barclays Bank family harbors.

Commenting on the development, Bank of Tanzania Governor Benno Ndulu denied reports that Barclays Bank Tanzania is being affected by the recent interest rate-rigging scandal that hit its parent company in United Kingdom.

Ndulu also says that under Tanzanian law, the financial institutions operate as separate entities from their parent companies so there is no way a problem in Barclays UK could invade Tanzania or East Africa.

Walakira Nyanzi

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