Ugandan governor says central bank not ‘obliged’ to bail out banks

Uganda shillings

The governor of the Bank of Uganda has reminded financial firms that it has “no obligation” to bail out distressed institutions in the hope they will “somehow be restored to financial health”.

“Such an option would be extremely dangerous,” Emmanuel Tumusiime-Mutebile said at the annual bankers’ conference on July 17. “It would allow the distressed bank to continue being mismanaged in the same manner that caused it to become distressed, thereby incurring further losses at the taxpayer’s expense.

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