Loans to private sector rise by 28%

Commercial banks increased lending to the private sector by 28.4 percent last year,  to the tune Rwf509.8 billion, up from 11.2 percent in the previous year. This was revealed yesterday by the Minister of Finance and Economic Planning John Rwangombwa, during the ‘Monthly Governance Accountability Day’ organised by the Prime Minister’s Office.

Wednesday, February 01, 2012

Commercial banks increased lending to the private sector by 28.4 percent last year,  to the tune Rwf509.8 billion, up from 11.2 percent in the previous year.

This was revealed yesterday by the Minister of Finance and Economic Planning John Rwangombwa, during the ‘Monthly Governance Accountability Day’ organised by the Prime Minister’s Office.

"In general, the economy was steady last year, and we hope to maintain its stability even this year,” noted Rwangombwa.

He explained that commercial banks have continued to decentralise their services by opening up other branches to support the private sector.

The minister further disclosed that the government initiated a programme to increase exports. Last year, the export volume increased by 44.4 percent, leading to an increased value of 52.8 percent (US$ 404 million).

"This is a major achievement, but there is still need to narrow the gap between our exports and imports,” he observed.

The minister said that they intend to curb down inflation – 7.5 percent by the end of this year, down from 8.3 last year.

Anastase Murekezi, the Minister of  Labour and Public Service, said the budget for public servants’ salaries will increase to Rwf 375 billion in the financial year 2016/2017, with 39.5 percent (Rwf 148 billion) reserved for teachers.

Currently, the budget for public workers’ salaries stands at Rwf 204 billion, with 24 percent (Rwf 58 billion) meant for teachers, who make up 62 percent of government workers.

Early last month, the Cabinet approved the move to increase salaries for all government officials based on index value.

Teachers earning Rwf 48,000 will see their pay increase to Rwf 55,133 in the 2014/2015 financial year and Rwf 62,803 in the 2016/2017 financial year.

Murekezi explained that a total of 761 teachers, who have been in the profession for 24 years, will be earning Rwf86, 968 monthly while 489 others who have been in the profession for 36 years and above will earn Rwf121, 920.

Currently, there are about 57,000 teachers in the country.

bosco.asiimwe@newtimes.co.rw