GASABO - Commercial Court judges have started capacity building in their legal domain to prepare for cases that might arise from leasing. The 16 judges, including their president, met at Hotel Novotel Umubano, Kigali to foster skills in the trade. The two-day seminar, facilitated by World Bank technocrats, centred on steps to take in case lease contracts fail to perform, and disputes unfold between parties involved in the transaction. “The judicial system is a vital part of the leasing deal since it intervenes in such rows,” said Brain Kirungi, a legal specialist of the International Finance Corporation (IFC) in Rwanda. According to Kirungi, the IFC, an investment arm of the World Bank, organised the seminar to ensure that judges understand the essence of leasing from a business point of view. “This is in line with our (IFC) aim to enhance the role of leasing as an alternative financing mechanism for businesses in Rwanda,” he said, adding that fostering sustainable growth in developing countries calls for financing of private sector investment. However, the Rwanda Commercial Court president, Gerard Benjamin, expressed concerns over complications in the current formats of leasing agreements. Talking to journalists during a 30-minute break, Benjamin spelt out why it’s necessary to correlate legal action with leasing risks. “Since the leasing deal is about pecuniary earnings, it should clearly spell out to the beneficiaries the risks and consequences involved in case of default,” he urged. Ends
