The Microfinance sector mainly serves the poor people and loans plus savings they deal in should turn around various times for many to benefit.However, in Uganda, the measures that were put in place to prevent the spread of Coronovirus has affected the activities of the poor and thus affecting the loan repayments. This has greatly affected Tier 4 microfinance institutions since they depend on loan repayments for further lending.

In response to these challenges, Uganda microfinance regulatory Authority recently released guidelines to provide guidance on credit management and loan restructuring for the MFI sector and Money Lenders.

The guidelines can be downloaded here