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Wednesday, February 3, 2016

Government is in advanced stages of establishing a law that will pave way for the formation of an autonomous institution that will license, regulate and supervise non-Microfinance Deposit Taking Institutions (MDIs), an official has disclosed.

State minister for Micro-Finance Caroline Okao said when passed, the Tier 4 Microfinance Institutions Act, will supervise microfinance institutions that are in the category of Tier 4 of which Saccos and Microfinance institutions MFIs are part.

MFIs that are not MDIs are registered as companies and hold money-lending licences.

The minister was speaking af a function where the Microfinance Support Centre Ltd (MSC) handed over cheques worth Shs120m to village savings and loan associations in Kamuli District last week.