Editor,

Recently, I read a letter in your daily about a certain bank that I transact business with. As an economist, I would like to respond to claims about banks not offering loans.

We all know that the banking sector is one of the fastest growing in Rwanda but apparently, the number of loan defaulters is growing and this affects operation.

Acquiring a loan for a development interest is good and it enables our banks to earn more money through the interests which money is also lent out and the cycle continues.

However, if not handled well, it can harm the entire economy. No bank can keep the cycle going if defaulters. Banks should devise means of netting all defaulters otherwise with time banks will be non-existent.

Ecobank has introduced a system of publishing defaulters and I must commend that this is a good move as it will force all defaulters to repay the loans for fear of being publicised and embarrassed.

This way we will be certain that poor loan repayment levels will go down.

Makerere University Business School