Rwanda | Rusizi: RAB helps farmers reduce bank debts
About 108 farmers in Rusizi district who had got loans to buy cows from Banque Populaire Rwanda (BPR) in Girinka program are celebrating; after Rwanda Agriculture Board reduced their debts and arrears they owed the bank.
According to the original agreement made by the district with the contractor, the contractor was supposed to give Frisian cows (100%) and the owners had to pay Rwf600.000 to the Bank Populaire.
Those who were given mixed cows (50% crossed breeds) had to pay Rwf500.000 but later farmers who were given these cows complained that the cows they were given are not providing the expected production and they failed to pay the bank according to the agreed terms.
This breach of contract with the bank made the Rwanda Agriculture Board (RAB) and Rusizi district to make an evaluation on these cows which proved that the cows people were given were not the agreed on breeds.
This was established when the banks that had given out loans for the cows had started demanding the payments of these loans and even arrears as farmers were supposed to pay back the loan from the money that would be got from their production yet farmers were claiming not getting the production.
On this Tuesday the 15th.Jan.2014, in the meeting that brought together Marcel Habyarimana the vice mayor for finance and economic development for Rusizi district and the official in charge of recovering loans in BPR in the district in the company of managers of BPR branches in Rusizi district decided that people who were given fake breeds of cows need justice and get to know the real value of the cows to be paid.
The district administration reached an understanding with UBPR administrators that farmers will not be taken to courts of law for not paying the loans and on the new value of the money farmers are to pay according on the resolutions from the evaluation done by the district and RAB.
The evaluation concluded that a farmer who was given a 75% cross breed will be paying Rwf500.000, the farmer with a 50% cross breed will be paying Rwf350.000 and the farmer with 25% of cross breed cows will be paying Rwf225.000.
Farmers are to pay according to the resolutions of this evaluation and those who had paid more than the new amount to be paid, the BPR will refund them and the arrears will be removed and those who were reported in the courts of law for not paying their loans, the cases will be dropped.
Farmers are excited about these resolutions and appreciate the role played bty their leaders in solving this fiasco.