Rwanda Govt. to recapitalize the institution over a three year period worth Rwf 23 billion.

Rwanda Government has unveiled a massive plans for the recapitalisation of Development Bank of Rwanda (BRD). The aim is to increase lender’s ability to fund the country’s ambitious development programme. This will help sustain financing key sectors, such as agriculture, manufacturing, housing, and exports, among others.

The plan will be to recapitalize the institution over a three year period. This three year period will see the  treasury spend Rwf 23 billion as Government holds majority stake.

Minister for Finance and Economic Planning, Uzziel Ndagijimana said ”Government will recapitalise BRD progressively using the national budget. The bank has made a lot of efforts to recover bad debts as BRD is in a restructuring process.”

Over the next three years, Government will spend Rwf23 billion to recapitalise Development Bank of Rwanda- BRD, a move aimed at increasing the lender’s ability to fund the country’s ambitious development programme. https://t.co/k1TzVVwbNw

— The New Times (Rwanda) (@NewTimesRwanda) May 20, 2019

According to Ndagijimana, the Government will spend Rwf 10 billion on recapitalising BRD.

Meanwhile as part of the recapitalisation, the government will soon name a new Board of Directors for the bank. It will also include appointing a new Chief Executive Officer and a new Chief Operating Officer.

The major question on everybody mind is whether the recapitalisation will enable the financial institution to serve its development mandate.”

Chief Executive Officer of Rwanda Stock Exchange, Celestin Rwabukumba said “The bank’s main agenda is developmental, but definitely you can be profitable while financing development.

According to Rwabukumba, this will depend on how they strike the balance between the two, but also correcting what went wrong in its management.

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