Why bank of Uganda closed Global Trust Band?

 

On Friday Bank of Uganda took over the management of Global Trust Bank Uganda Ltd with its current management and board of directors suspended.

A news statement from the Governor of the Bank of Uganda, Tumusiime Mutebile indicated that an action was taken because the Bank of Uganda was determined that the continuation of Global Trust Bank’s activities was detrimental to the interest of its depositors in notice that was pinned at the Tororo branch.

Bank of Uganda closed Global TRUST BANK in exercise of its powers under section 88 [1] [a] and [b] of the financial institutions act 2004. Bank of Uganda effective July 25th 2014 took over the management of global trust bank.

The Bank of Uganda news notice states that Global Trust will remain closed until further notice. Depositors will be informed about the arrangements they will use to access their money. However sources in government told us that the bank was closed because it was offering loans to members of opposition without requiring them to pay interests.

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