Parliament Okays UGX 240bn To Capitalize Central Bank

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In short
While tabling the motion to recapitalize the Bank, Finance State Minister, David Bahati, said currently BOU has Shillings 860 billion, which makes it difficult to conduct monetary operations. He cited Section 14 2 of the Bank of Uganda Act 2000, which states that the authorized capital of Bank of Uganda may be increased by a resolution of parliament to ensure adequate operations of the bank.

Parliament has approved Shillings 240 billion to recapitalise Bank of Uganda-BOU. The money will be disbursed to BOU in two phases. Government will inject Shillings 150 billion in BOU in the 2016/2017 financial year and another Shillings 90 billion in the following financial year.
 
 
The money was approved during plenary chaired by the Speaker of Parliament, Rebecca Kadaga following a recommendation by the Finance, Planning and Economic Development Committee. While tabling the motion to recapitalize the Bank, Finance State Minister, David Bahati, said currently BOU has Shillings 860 billion, which makes it difficult to conduct monetary operations.
 
 
He cited Section 14 (2) of the Bank of Uganda Act 2000, which states that the authorized capital of Bank of Uganda may be increased by a resolution of parliament to ensure adequate operations of the bank.
 

"I therefore, beg to lay a motion to increase the authorized capital of Bank of Uganda by 240 billion Shillings over two financial years," he said. The motion was approved without debate. In the 2015/2016 financial year, parliament increased the budget provision for Bank of Uganda to Shilling 860 billion out of the 1.1 trillion Shillings required.

 

About the author

Olive Nakatudde
Olive Nakatudde is a URN journalist based in Kampala. Nakatudde has been a URN staff member since 2013.

Nakatudde started out in journalism in 2009 with Dembe FM radio in Kampala. In 2012, Nakatudde joined Voice of Africa as a political reporter. She has been a photographer since her journalism school days at Makerere University.

Nakatudde is interested in good governance and public policy, which she reports on intensively from the Uganda Parliament. She is a keen follower of cultural affairs in Buganda Kingdom and covers the kingdom's Lukiiko (parliament). Nakatudde also reports on education and health.