Govt declares Rwf 23 bn amount to recapitalize Development Bank of Rwanda

The Ministry of Finance and Economic Planning has launched a plan to recapitalize the Development Bank of Rwanda in a move intended at augmenting the lender’s ability to fund the country’s ambitious development programme.

The treasury seeks to invest Rwf 23 billion in the next three years to recapitalise the institution in which the Rwandan Government holds majority stake. In the 2019-2020 fiscal year alone, which commences in July 2019, the Government will pump out a fund of Rwf 10 billion on recapitalising Development Bank of Rwanda, according to Uzziel Ndagijimana, the Minister for Finance and Economic Planning, as reported by The New Times.

The government of Rwanda has contemplated to recapitalise the institution to enable it play a greater role in the expansion of the private sector to accelerate growth. According to Uzziel Ndagijimana, the bank is currently in the process of thorough restructuring, which is why it is being recapitalised.

“Development Bank of Rwanda is in a restructuring process. The bank has made a lot of efforts to recover bad debts and the Government will recapitalise BRD progressively using the national budget,” Ndagijimana told The New Times.

The government of Rwanda is setting its plan to name a new Board of Directors for the bank after appointing a new Chief Executive Officer and a new Chief Operating Officer.

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