The Ministry of Finance and Planning and Economic Planning (MFPED) has asked Parliament to authorize the capitalization of the Bank of Uganda (BOU) by Shs240 billion for the financial years 2016/17 and 2017/18.
In a May 3 communication to the Clerk of Parliament Jane Kibirige, the MFPED Permanent Secretary Keith Muhakanizi said the money to BOU should be apportioned and disbursed in two tranches of Shs 150 billion and Shs 90 billion, respectively.
‘According to Section 14(2) of the Bank of Uganda Act 2000, the authorized capital of Bank of Uganda may be increased by a resolution of Parliament to ensure adequacy to the Bank operations’, Mr Muhakanizi wrote, adding: ‘Please make arragements to ensure the Minister of Finance, Planning and Economic development to lay the resolution in Parliament’.
The money is drawn against a background where Parliament increased the budget provision for the BOU capitalization to Shs 860 billion for FY 2015/16, out of the required Shs 1.1 trillion, leaving a deficit of Shs250 billion.
