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Law Capping interest rates
Rank: Elder Joined: 7/22/2009 Posts: 7,910
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quicksand wrote:MaichBlack wrote:heri wrote:http://mobile.nation.co.ke/business/Bank-of-Uganda-under-pressure-to-limit-cost-of-credit/1950106-3403494-qrwv3kz/index.html
IN SUMMARY
On Tuesday September 20, Bank of Uganda Governor Prof Emmanuel Tumusiime-Mutebile called an impromptu meeting at his office, which excluded senior management staff, to discuss interest rate caps.
About seven executives attended Prof Tumusiime-Mutebile’s meeting, including representatives from Stanbic Bank, PricewaterhouseCoopers Uganda, the East African Development Bank, Uganda Revenue Authority and the Ministry of Finance, Planning and Economic Development.
Prof Mutebile raised objections to interest rate caps, arguing that they could escalate distortions in the credit market, trigger blackmarket activity and deny many borrowers access to credit, according to a source who attended the meeting Enough said!!! But if you listen to some people here, apparently everyone who has some Finance and Economics knowledge is wrong on this issue! And people who know zilch are correct!!! Fait Accompli. What is done is done, for Kenya Banksters at least (in the short term). @MaichBlack if you were at the helm of a Kenyan bank (or in a strategic management position) and kept on with this pointless attitude of railing at unstoppable political forces instead of getting down and dealing with a business environment that has changed, you would lose your job. For Uganda, it is the ominous shot across the bow. By admitting to being under intense pressure, the gov. is telling the banksters to tame their greed or the politicians will tame it for them. He is saying, look across the border, no one thought it could happen but that reality could soon visit us. When you have your boot on millions of necks, fancy demand-supply and other monetary theories will not cut it. It is the caving-the-heads-in-with-a-rungu theory that takes over, damn the consequences. The saying 'beware of a cornered animal' keeps going over the heads of these disconnected and pampered bankers. My friend, why do you have selective memory??? Look at my posts after the signing. I am busy taking advantage of the fallout and getting rich. Niko kwa soko ndugu!!! But that doesn't stop me from commenting on threads and especially when there is a current story where the good professor in Uganda is of a similar opinion as myself just like the good Dr. in Kenya both of whom happen to be at the helm of Central Banks in their countries. But I apologise if I stepped on toes of some ignant characters. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 6/23/2009 Posts: 14,320 Location: nairobi
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tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. Here we are.. Tbills approaching 7% while stocks are on mini rally COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 6/23/2009 Posts: 14,320 Location: nairobi
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obiero wrote:Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill As anticipated, a court case to save the banks. His reasons quite valid http://www.businessdaily...3362-155ln4sz/index.html COOP, IMH, KEGN, KQ, MTNU
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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obiero wrote:obiero wrote:Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill As anticipated, a court case to save the banks. His reasons quite valid http://www.businessdaily...362-155ln4sz/index.html The case doesn't have much legal basis. Mark 12:29
Deuteronomy 4:16
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Rank: New-farer Joined: 3/12/2014 Posts: 96
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guru267 wrote:obiero wrote:obiero wrote:Musimo wrote:Sober wrote:KulaRaha wrote:kizee1 wrote:streetwise wrote:The banks are in denial, they need to include in their announcement the words , for exiting and new loans.
watch this space,,, can the law apply retrospectively? isn't that against the constitution All old loans will be repaid and refinanced at new rates...banks are trying to delay the inevitable. This law cannot be applied retrospectively. That is what killed the Donde Bill Quick question: the other day,when interest rates on government bills rose to the 20s,didnt banks give notice to charge more interest? Now that the rates are down,why don't I sue my bank for not revising interest rates downwards as they revised them upward before? Educate me wazuans. Only @maka seems unaware of the failed implementation on the Donde bill As anticipated, a court case to save the banks. His reasons quite valid http://www.businessdaily...362-155ln4sz/index.html The case doesn't have much legal basis. where was he when UK was applying his mind to sign? does he mean parliament cannot pass laws to govern our institutions?
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Rank: Elder Joined: 4/22/2010 Posts: 11,522 Location: Nairobi
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obiero wrote:tom_boy wrote:obiero wrote:maka wrote:obiero wrote:Pesa Nane wrote:obiero wrote:[quote=maka]Look at this;
This month the Central Bank of Kenya offered a 10 year Treasury Bond for a total amount of up to Kshs 25 Billion. The total number of bids received was 795 amounting to Kshs 26.31 Billion. The Weighted average rate for successful bids was 15.039%
Coupon 15.039% crazy...even after WHT its good cash I spoke to the president and his take was that the government shall pull down borrowing rates for itself, which is a good thing.. Expect government to obtain cheap credit. Watch the tbill rate slide down in coming months. We live in good times Congrats for speaking with @citizen001 but you should have asked him how the "government shall pull down borrowing rates for itself" when in fact we know the rates are market driven (through auctions) Beg to differ. The auctions are driven mainly by banks.. Now that banks are pushed to the wall on consumer lending, expect government to show a stiff hand Rates at the auction won't come down anytime soon....that 10 year was just a start. 91, 182, 364 day bills all down.. Expect the shorter tenor to hit 6.5% by December.. As per Graham's law, the bulls at the NSE must show up shortly.. http://www.businessdaily...4800-b0eb44z/index.html[/quote] As per my predictions, the dance between banks and Government in pricing billsand bonds has begun. Banks cannot afford to flood CBK with offers! They will have to worksmart. Here we are.. Tbills approaching 7% while stocks are on mini rally But that's Tbills alone bonds rates are still quite high....after the crazy 10 year we have had the 5 and 20 year which had attractive rates. possunt quia posse videntur
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Rank: Chief Joined: 5/9/2007 Posts: 13,095
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Rank: Member Joined: 9/14/2011 Posts: 869 Location: nairobi
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what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month
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Rank: Elder Joined: 7/22/2009 Posts: 7,910
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heri wrote:what is your experience in trying to get a loan?
I have an existing 5 year loan with a bank. But when i approached them for a new loan, they said they are only giving loans for a term of 6 months
That they are still working on new products which they will have by next month We said that will happen but some fellows here said it would not happen. Let me hear their comments. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Veteran Joined: 8/10/2014 Posts: 992 Location: Kenya
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