arnor sighvatsson : guidelines issued to financial institutions due to non - binding clauses linking loans to the exchange rate introduction by mr arnor sighvatsson, deputy governor of the central bank of iceland, about guidelines issued to financial institutions due to non - binding clauses linking loans to the exchange rate, reykjavik, 1 july 2010. * * * this morning the central bank and the financial supervisory authority issued guidelines to financial undertakings in order to instruct them on how to respond to the supreme court judgement on non - binding exchange rate linkage clauses. with these guidelines, the supervisory bodies concerned declare that their unequivocal understanding of the situation resulting from this supreme court decision is that, in cases involving loan agreements that have been ruled unlawful, the settlement and repayment of those agreements shall take account of articles 4 and 18 of the act on interest and price indexation, no. 38 / 2001, unless the parties agree otherwise. the guidelines are intended to create stability in financial market transactions and promote a secure and effective financial system. the financial supervisory authority and the central bank are required by law to ensure financial system stability, which is a matter of vital public interest. with the issuance of the present guidelines, these institutions are acting in accordance with the legal obligation resting on them. the guidelines are based on the above - specified supervisory bodies ’ considered opinion that there is no legal or substantive rationale for the maintenance of the previous interest rates ( which were determined with reference to foreign interbank rates ) after the portion of loan principal bearing such interest has been uncoupled from the exchange rate of the currency concerned by means of the recent supreme court decision. the supervisory bodies are of the opinion that such an interpretation of the supreme court judgement, were it implemented to the fullest extent possible, would represent such a heavy blow to financial undertakings ’ equity that the treasury would be forced to contribute substantial new capital to them. that expense would ultimately be borne by other members of society. the method recommended by the central bank and the financial supervisory authority will preserve the stability of the financial system even in the event that a majority of loan agreements with exchange rate linkage clauses are deemed unlawful, although it could take quite a long time to determine this conclusively. financial undertakings ’ equity will sustain a considerable blow in any case, if judgements by the supreme court ultimately extend to a large portion of their loan portfolios. offsetting this is the fact that uncertainty will have been eliminated, which could

bank of uganda remarks by louis kasekende ( phd. ), deputy governor, bank of uganda … … … … … … … … …. at the networking dinner for saints, peter & paul katale catholic sub - parish, lweza parish theme : “ the church, business and the economy ” … … … … … … … … …. june 22, 2017 at hotel africana, kampala his eminence cardinal emmanuel wamala, all clergy present, all captains of industry and businesses present, ladies and gentlemen, good evening! i am greatly honored to be chosen as a key note speaker at such a gathering of men and women that have superintended many successful businesses and enterprises. i want to make a few remarks this evening on the topic of our attitudes towards doing business and how they affect our ability to take advantage of the opportunities within our economy. i know that many of you own or manage businesses ; so i hope that you will find something of interest in what i have to say. the theme of this dinner is “ the church, business and the economy ”. most of us here are christians and we take our faith seriously and try to live our lives in line with the teachings of the church. i thus would like to argue that, unlike what our history has taught us, it is possible to run a successful enterprise while living true to the teachings of our faiths. let us recall the periods when an economy has distortions such as high unemployment, high inflation, low growth rates, and episodes of scarcity of goods or services. in such circumstances like the recent global financial crisis, the first group to be blamed by the public are the business people and it is rare that the public will step back to evaluate the distortions in public policy as a plausible source of their predicament. may i also remind you that human behaviour has an element of greed, most times, where maximising profits irrespective of means and processes, tends to be the driving force for most businesses. combining the economic distortions and greed has often implied, rather unfortunately, that religion and business are in conflict. our history as a country is littered with many of these bad practises where business is synonymous with such tag labels as “ bamulaze ekibuga ”, “ bamutomeza ” ; and has been labelled as unworthy of people with values. yet this is far from the truth. business is a calling and religious beliefs can support rather