The Schools to loose property over bank loans: The Schools to loose property over bank loans: Private school owners are feeling the effects of the containment measures of COVID-19. It is now coming to four months since schools were told to close over COVID-19.
President Museveni to contain coronavirus closed schools to prevent over 15million Ugandans in schools from getting the virus.
The Schools to loose property over bank loans
A few weeks ago. The president allowed some businesses to reopen but schools have remained closed because the situation is still not okay.
But most schools are likely to loose property because most of them are operating on loans from banks. Such banks are now threatening school owners that if they don’t pay they will take their properties.
why do schools take loans from Banks
Schools take bank loans to build expansion block, others are improving on the already existing buildings. The owners are sure to get that money back through school fees from students.
Continued closure of schools means some may never come back while others their properties will be taken by banks. This is because they have no other source of money other than students who are not at schools now.
One school owner from Mukono district our reporter talked. Says he borrowed 200m from one commercial bank to build more class blocks. He had started paying every month but now he has defaulted four months. He says he doesn’t know what to do yet the school was the security.
When we talked to one commercial bank in Kampala name withheld. The manager said they also don’t know how they can help schools. That they also need money to operate as banks.
In his last address to the nation. The president offered to help some businesses with capital to start new businesses. However if school owners divert to other businesses as the president says. Where will students go when studies resume?
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