Leader of Opposition opposes move to recapitalise Bank of Uganda

Betty Aol Ocan, the leader of the opposition has said that Bank of Uganda's continued recapitalisation will breed financial indiscipline at the institution.

Her fears are contained in her response to the 2020/2021 National Budget Framework Paper.

Bank of Uganda has asked for Shs 480 billion for recapitalization next financial year.

But Ocan said that since Bank of Uganda superintends over the commercial banks, it needs to lead by example by exercising fiscal discipline.

In her response, Ocan said if the central bank is granted its wish, its budget will be more than that of other crucial sectors such as tourism which brought in $1.6 billion, Ministry of Gender, Labour and Social Development and the ministry of Trade and Industry.

"The bank should consider utilization of savings on government accounts, a drawdown of general reserve funds and deposit auctions as well as repurchase agreements," she wrote.

She said Bank of Uganda should explore all other avenues before seeking any recapitalization.