The Monitor (Kampala)

5 September 2011

Uganda: Tropical Bank Is Safe and Sound - Bank of Uganda

Kampala — Bank of Uganda has dispelled fears about Tropical Bank's financial status as speculation concerning the banks soundness continues to make rounds in the public domain. The central bank on Friday issued a statement saying the fall of Col. Muamar Gaddafi's regime would not affect the operations of the bank.

Mr Emmanuel Tumusiime Mutebile, the BoU governor, said in the statement: "The current events in Libya will not impact the financial status of Tropical Bank." He said BoU had at the start of the Libyan crisis mitigated measures, to ensure that Tropical Bank operates independent of the Gaddafi regime.

Mr Ellot Mwebya, the director of communications at BoU, told Daily Monitor on Friday that through the appointment of a new management, the central bank had insulated Tropical Bank from the Tripoli regime. Libya, under the Gaddafi regime was one of Uganda's leading FDI, with investments worth $350 million.

The regime under the Libyan Arab Investment portfolio LAP Green had majority shareholding in companies including National Housing and Construction Corporation, Uganda Telecom and Tropical Bank.

The change of the regime has left the public speculating about such assets especially now that their major financier has become a fugitive. It is alleged that companies especially Utl are heavy with debts that might be hard to service. According to reports Utl has a combined debt of Shs30 billion accumulated from non payment of interconnect charges to MTN and Airtel.

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