Ministry of Finance and Economic Planning on Wednesday appeared before the Parliamentary Standing Committee on National Budget and Patrimony to outline their activities for the 2017/18 financial year as well as highlight the achievements in the current fiscal year.
Led by Caleb Rwamuganza, the Permanent Secretary, and Secretary to the Treasury, MINECOFIN team assured the committee that the upcoming financial year will be geared towards promoting financial inclusion to increase the number of the banked population in the country.
“As of today we have managed to increase access to finance for the adult population from 72 to 89%. We intend to increase this number by increasing loans offered by financial institutions, both for short and long-term periods as well as enhance savings and lending in the long term through treasury bonds,” PS Rwamuganza said.
Loans to the private sector amounted to Rwf788.1 billion in 2016/2017, representing an increase of 6 % from the previous year, while the target is to ensure that banks disburse at least Rwf853 billion in loans in the fiscal year that begins in July.
The Chairperson of the Committee, MP Constance Mukayuhi Rwaka, called for strategies to lower interest rates charged by financial institutions to allow for easy access to financial services that will help improve their welfare and stimulate the country’s economy.
With two months remaining for the current fiscal year to come to an end, the execution of the MINECOFIN’s budget is at 96%.