Uganda Capital Markets Authority announces new financing facility for cash strapped companies
Uganda’s capital markets regulator Capital Markets Authority (CMA) in a bid to rescue listed cash strapped companies has announced it has a financial facility which it has generated over the years.
Keith Kayegira the chief executive officer (CMA) said businesses with long-term-paybacks such as those dealing in property development and other forms of industry and require long term debt, should apply to the authority for a better financing option rather than suffering with the constraints of servicing short term debts.
“We encourage big business owners to turn to capital markets to raise long term funding to finance long term projects. We encourage people to bring applications to the capital markets authority to access the pool of long term credit we have as a country which is growing faster than the deposits in the banking sector,” he said.
About the slump in the property market where many developers are currently stranded with finished unoccupied houses, Mathias Katamba the managing director Housing Finance Bank explained that the slump in the property market is the driving force behind the of the slump the economy like it happened to the US during the economic crisis because there was no demand for large ticket items like houses.
“One of the reasons why we are holding this conference is we want to smoothen out the irregularities between expectations from the demand and supply side of housing so that developers know as they build houses, they should be priced within the ranges that buyers can afford,” he said adding that they hope to correct the anomaly where developers build houses that take long to get off books and start building houses that attract upfront commitments.
