Of Uganda’s debt ridden corporate class
Read full article here, Summit Business
The kind of lifestyle the corporates want to live is excessively expensive. But also, it exposes them to lifestyle diseases like heart related complications. Above, they do not have a peace of mind due to huge loans to finance.
I know of companies that influence the lifestyle of their employees. In most cases, the company provides loans to the employees, dictate the cars to drive, apartments to live in and dress code while at work. All these expenses come at the cost of the low salary of the employee. As a way to sustain the style in the short term, the employee is forced to go for extra financing. This is why you will find a corporate paying around three loans at the same time.
This situation is expected to rise as long as there are no clear regulations on loans. How can one get loans from three different financial institutions at the same time? This partly explains for the high bad debts incurred by commercial banks.
People should learn and appreciate to live within their means.