THE proposed Tanzania Teachers' Bank may start operations in June, this year, it was announced in Dar es Salaam.
The Tanzania Teachers' Union (TTU) President, Mr Gratian Mkoba, told the 'Daily News' that progress towards establishment of the bank was going on well and would be officially opened by President Jakaya Kikwete.
"We have mobilised 12.5bn/- through teachers' contributions and soon the union will issue shares to its members to raise about 10bn/- to boost the core capital," he said. The minimum core capital requirement by the Bank of Tanzania (BoT) for commercial banks is 15bn/-.
Mr Mkoba said TTU has currently more than 180,000 members as a special group. He said after the bank starts its operations the door would be open for teachers from the private sector to join. He said that instead of teachers taking loans from other financial institutions, they will now borrow from their bank.
After commencing operations, he said TTU will negotiate with government to deposit teachers' salaries in their own bank, to increase its deposits which could enhance the financial facility's lending capacity. He added the new bank will begin its operations in Dar es Salaam before moving to Mbeya, Mwanza, Arusha and Dodoma to bring financial services closer to the members.