After that resolution, the ministry of local government and Rwanda cooperative agency (RCA) were charged to overlook the implementation of it and helping the recovery of non-performing loans.
Debtors included local government officials and other public servants. In December 2018, it was announced that local government officials owed SACCOs debts amounting to Rwf 428.03 million in different sectors across Rwanda.
After the announcement, government officials were mandated to pay back their debts at the risk of being sacked.
The Minister of Local Government, Shyaka Anastase wrote letters to districts administrators on December 18th, 2018 and set a repayment deadline for December 31st, 2018.
It is a problem that had been lingering that it was not a surprise when the National Dialogue considered it.
In June 2018, RCA had announced non-performing loans were 16% of the total loans issued.
Sacco regulations state that non-performing loans should never exceed 5%. At the time, 1.7 billion Rwandan Francs were not reimbursed.
In February this year, RCA announced it had already recovered Rwf 300 million.
In November 2019, the Central Bank of Rwanda reiterated that the state of SACCOs non-performing loans was deplorable.
However, it has been better in the last 9 months since non-performing loans have shifted downwards from 6.8% to 6.2% in September,2019.
During his address at the 16th National Dialogue ‘Umushyikirano 2018, Prime Minister Edouard Ngirente reported that at least 81% of SACCOs non-performing loans had been recovered.
About recovering loans, Minister Ngirente stated that Rwf 1.15 billion had already been recovered.
He mentioned that from the beginning, Rwf 2.2 billion had been repaid upfront, another Rwf 1.9 million was being repaid in installments and indebted public servants had paid back their debts.
Of Rwf 796 million government officials owed, Rwf 607 million have been repaid.
The Central Bank of Rwanda monetary policy committee held a meeting on May 3rd, 2019 and announced that the rate of non-performing loans in microfinance institutions had reduced from 8.8% to 7.2% recorded in the first quarter of 2018.
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