Microfinance loan defaulters face legal action

GICUMBI - A total of 229 Byumba town residents who acquired loans from the defunct IRIBA Microfinance cooperative have been instructed to repay the loans as soon as possible or face legal action. The warning was issued on Monday by Gicumbi District Vice Mayor for Economic Affairs Ildephonse Butera, in a meeting that brought together the loan defaulters and a district independent microfinance’s loan recovery commission. “All those who have not serviced their loans with IRIBA Microfinance have to clear their obligations as soon as possible or face court action,” said Butera. The Microfinance was closed down last month due to financial losses attributed to non-servicing of loans since 2004. An independent commission to recover the loans was set up recently by the district security meeting. It comprises district officials, the police and IRIBA Microfinance Administrative council. “All loan defaulters are to be interviewed in phases by the independent commission, starting with the oldest loan defaulters. They have to explain and assure us in writing when they will clear their outstanding loans”, said the wMicrofinance manager Jean Baptiste Niyibizi. Niyibizi further said the Microfinance shall resume operations as soon as outstanding loans are recovered. Ends