MICROCAPITAL BRIEF: Uganda Cooperative Savings and Credit Union Limited (UCSCU) May Defer Repayment Requirements After Fire Destroys Market

The Uganda Savings and Credit Union Limited (UCSCU), an umbrella body of 1,000 savings and credit cooperatives (SACCOs), reportedly is considering concessionary moves in an effort to recover funds from a government-sponsored UGX 700 million (USD 284,000) loan that UCSCU on-lent to local vendors in Nakivubo Park Yard. Due to a fire that destroyed the market in August 2011, UCSCU board members may approve the reduction or rescheduling of payments to make it easier for vendors to repay their microloans. If successful, the funds could be re-lent, which would “enable other people to benefit from the government programme” [1] [2].

By Brendan Millan, Research Associate

About Uganda Cooperative Savings and Credit Union (UCSCU): Established in 1972, the Uganda Cooperative Savings and Credit Union (UCSCU) is an umbrella body of the savings and credit cooperative societies (SACCOs). It aims to organize SACCOs, educate and advocate for SACCOs’ members, promote microloans and savings services, and network with like-minded organizations. There are approximately 1,000 SACCO members across the 82 regions of Uganda.

Sources and Resources:

[1] Microfinance Africa: “Uganda: Microfinance Fights to Recover Shs 700m from City Vendors” by Martin Ssebuyira. http://microfinanceafrica.net/news/uganda-microfinance-fights-to-recover-shs700m-from-city-vendors/

[2] MENA FN: “Police May Fail to Find Cause of Nakivubo Park Yard Fire.”, http://www.menafn.com/qn_news_story.asp?storyid=%7B750673be-27d6-4ddc-9d02-d7ebff80e042%7D

MicroCapital.org Article, October 19, 2010, “Ugandan Government Orders Release of $26m to Aid Rural Poor through Microfinance”, https://www.microcapital.org/microcapital-brief-ugandan-government-orders-release-of-26m-to-aid-rural-poor-through-microfinance/

MicroCapital Universe Profile: Uganda Cooperative Savings and Credit Union Limited (UCSCU), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Uganda+Cooperative+Savings+and+Credit+Union+(UCSCU)

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