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The most challenging issue of Access to bank loans with the support from the ’’ HANGUMURURIMO’’ program was discussed in HUYE Public Private Dialogue

> 13 April 2015

Thrusday 26th, 2015, a Public Private Dialogue in Huye tackled the very hot issue of difficulties encountered by business people to access bank loan with the guarantee support under “Hangumurimo” Program.

The dialogue took place in Hotel credo and it was attended by managers and staff from huye District, Business people and representatives of banks and microfinance institutions operating in Huye. Rose Kanyange from the RPPD Secretariat also took part in the dialogue.

On a welcome note, Huye PSF President, Mr Lambert Byemayire thanked participants for their time and requested all participants to be open and straight forward to the point because time for business people is money.

In his opening remarks, Mr Nshimiyimana Vedaste, the District Executive Secretary insisted on the importance of this dialogue as a way of finding solution to issues through consensus. Like other participants, he noticed the absence of representatives of “Hangumurimo” Program at national level.

He however ensured that even though the national level is not represented, the dialogue will be done and good resolutions are expected from it. He also pledged the District’s support in the implementation of the dialogue resolutions so that this issue can be solved.

Business people exposed their concerns and bank representatives and officers in charge of “Hangumuramo” program in Huye tried to explain how the process works.

The keys challenges identified by participants on “Hangumurimo” program include but not limited to:

a) Lack of harmonization between Hangumurimo and bank procedures leading to inaccessibility of loan by project promoters.

b) Specific problems related to poor services from banks like granting less than the amount needed for the project, delays in releasing money when the loan was approved or delays between installments while the banks keep counting interests and penalties.

c) Poor monitoring of Hangumurimo program and inefficient communication to program beneficiaries.

d) Banks do not trust « Hangumurimo » security and request to the project promoter more securities than necessary.

After hearing all those challenges, participants to the dialogue adopted the following resolutions

 Harmonize procedures between BDF and Banks to reduce time for releasing the loan.

 Organize a joint M&E between District, BDF and PSF to examine the problems related to “Hangumurimo” program and find a way to improve coordination between banks and BDF.

 Banks should inform without delay the loan applicant its decision so that he may not waste his time and money.

 Agreements between banks and BDF should be known by beneficiaries to allow them to decide based on the benefits/loss expected.

 BDF should increase education and information dissemination of program beneficiaries.

 Advocacy should be made so that those who have incurred losses due to inadequacy collaboration between banks and BDF can be compensated.

 Increase capacity of BDF staff in project analysis.

 National institutions responsible for “Hangumurimo program” should attend the next meeting that will be organized in Huye within a month period to examine how these resolutions can be implemented.

In view of the atmosphere of the dialogue characterized by openness and consensus on resolutions and followed by a great commitment to implementation, there is hope that PPD can bring positive change in the business environment.

Bizimungu G. Jean Baptiste
RPPD Consultant