The minister of Education and Sports, Janet Museveni has appealed to banks to halt repayment of loans by schools until they officially re-open.
She said banks should wait until schools are fully operational again.
The minister made these remarks while meeting officials from the Uganda Bankers Association on Tuesday.
The meeting was held to discuss how proprietors of private education institutions can be supported over the accumulated non-performing loans.
Shortly after the meeting, Janet Museveni said in a tweet that she urged banks to halt the repayment of loans by schools.
"My appeal to the banks in Uganda is to consider halting the repayment of loans by schools until they are operational again and can generate income that will enable them to pay back the outstanding loans," Janet Museveni said in a tweet.
Earlier this year, private school owners had asked government to intervene, and help them with a fund, that they can use to repay loans.
The minister for Finance Matia Kasaija said then, that government has no money. Kasaija urged schools to sell their assets and pay off the loans.
Last week, The Bank of Uganda (BoU) announced extension of credit relief for borrowers in the education and hospitality sectors that were negatively affected by Covid-19.
Schools in Uganda have been closed for nearly two years. A recent report from UNICEF revealed that Uganda has closed its schools for the longest period.
President Museveni in a recent address said that schools can now hope to be reopened in January 2022, although government is yet to issue a reopening plan, with a month to go.