well when you are thirsty. these are some of key issues which have prompted international best practices in the area of resolution regimes, and we are looking forward to understanding these from the historical examples and restructuring case studies that will be shared during the training seminar. the g20 and the fsb are calling on countries to undertake the reforms necessary to implement these standards. in uganda, this will require cooperation amongst authorities, that is, among the bank of uganda, the ministry of finance, planning and economic development, the insurance regulatory authority and the capital markets authority, to review business structures, legal powers, policies and operations to improve recovery and resolution planning as well as the mechanisms employed in resolution of firms. therefore, as a capstone, i am glad that the participants will also have the opportunity to do some handson decision making in the group exercises at the end of each day. over the course of the next three days, the team from deutsche bundesbank which includes mr. peter spicka and mr. martin pontzen, with their wealth of experience will be taking us a step further towards these areas. i believe that the seminar will be enriching as they share their experience in europe on relevant areas including the analytical tools for macroprudential supervision. of particular importance will be the section where the seminar goes into the details of international and european initiatives for developing efficient resolution frameworks for financial institutions and explains fundamental features of the german bank restructuring act. i hope that this seminar, bringing all the players in the financial sector together, will help to facilitate sharing of ideas and experience and will promote the development of an effective framework for the restructuring and resolution of financial institutions, especially sifis so as to safeguard financial stability in uganda. i am very grateful for the opportunity to have addressed you this morning. thank you very much. bis central bankers ’ speeches

and profits. 3 consequently, formal financial institutions that rely on audited financial statements and wellarticulated project and financial proposals to disburse loans assume that most smes are mugume, a. ( 2008 ). profitability, concentration, and efficiency in uganda ’ s banking industry. ( d. a. kihangire, c. a. abuka, & j. o. apaa, eds. ) the bank of uganda staff paper journal, 2 ( 1 ), 5 – 35. world bank database 2013. kasekende, l. and opondo, h. ( 2013 ). financing small and medium scale enterprises ( smes ) : uganda ’ s experience. bou working paper wp / 03 / 01. bis central bankers ’ speeches high risk borrowers whose credit worthiness is not easy to establish due to information asymmetry. in addition, formal financial institutions assume that extension of credit to these smes would require high monitoring and enforcement costs. both these supply and demand related factors remain major handicaps to the development of medium to long term financing. as a result, the government of uganda ( gou ) in collaboration with its development partners alongside bank of uganda has had various attempts in the past to remedy the structural bottlenecks in credit allocation. these attempts took the form of low interest rate credit schemes 4 such as ( 1 ) apex private sector loan scheme ( apex ) ; ( 2 ) export refinance fund ( erf ) ; ( 3 ) distressed flower project fund ( dfpf ) ; ( 4 ) export promotion fund ( epf ) ; and ( 5 ) development finance fund ( dff ). other schemes have included ( a ) investment term credit refinance fund ( itcrf ) ; ( b ) cotton sub - sector development project ( csdp ) ; ( c ) rehabilitation of public enterprises ( rpe ) project ; and ( d ) export credit guarantee scheme amongst others. more recently, the agricultural credit facility ( acf ) was introduced in 2009 to deal with the second round effects of the global food price hike of 2007 and promote value addition in agro - processing. the performance of these schemes has been varied. the timing of introducing the schemes, mechanism of delivery and quality of business cases from smes for these loans partly explains the variance in performance. ultimately, the sustainability of these credit schemes has been and will be dependent upon low defaults of the loan portfolio and low overall administration costs.