The executive director Private Sector Foundation Uganda, Gideon Badagawa, warns government about the continuous exploitation of commercial banks by hiking the interest rate which scares away potential investors from taking loans.Badagawa continues to state that there are a very few development banks that are offering development lending which can be utilized by investors who always call for long term loans, and the rest are extending loans for short term which most of the time scares away investors from applying for loans to expand their business; in the long run the country losses these potential investors to countries with banks that will offer them long term loans.
He says the interest charged on these loans are very huge that can attract investors to apply for these loans.