Rwanda : Bankers complain of increasing numbers of bad loan
The association of banking institution in Musanze district have said that the increasing numbers of clients failing to service their loans has resulted in a loss of trust among clients and warned that clients to desist from the habit.
The complaint was raised during a Joint Action Development Forum (JADF) meeting in Musanze district in the Northern Province on December 20. The meeting brought together development district partners to discuss achievements made during the 2012 performance contracts.
The bankers said that the habit has resulted to some institutions becoming reserved in the amounts of loans handed out to residents, which in turn impacts on the development goals set by the district especially in the economic empowerment of the community.
Some of the culprits were highlighted among women entrepreneurs who receive loans under the women’s entrepreneurship fund but end up failing to finance the subsidized loans.
The chairman of JADF Musanze, Pastor Gabriel Rutikanga said that this trend has resulted to poor performance in the set development goals and subsequently poor services rendered to the clientele.
The forum resolved that a team of technicians will be set up to follow up the residents and encourage them to pay the loans, and also specifically encourage the farming community to work with banking institutions so as to boost the performance of the sector.