Parliament on Wednesday, 04th May 2016, passed a Motion authorising the increase in capital of the Bank of Uganda to Shs1.1 trillion over the next two financial years.
The Minister of State for Finance, Hon. David Bahati who moved the Motion said that the capital of Bank of Uganda is currently shs860 billion which makes the conducting of monetary operations difficult.
‘I therefore, beg to lay a resolution to increase the authorised capital of Bank of Uganda by shs240 billion over two financial years,’ he said.
Parliament increased the budget provision for Bank of Uganda capitalisation to shs860 billion in the 2015/2016 financial year out of the total shs1.1 trillion required.
Section 14(2) of the bank of Uganda Act 2000 provides for the authorised capital of Bank of Uganda to be increased by a resolution of Parliament to ensure adequate operations of the bank.