Dear New Horizons,

The substantial difference between the contributions sent by ECLOF Uganda and ECLOF Bolivia to the Geneva Secretariat has been mentioned recently. Our contribution from Uganda is just over US$52,000 compared to Bolivia’s almost US$142,000! I have reviewed our operations to see why we cannot afford more and the results are salutary. For a long time ECLOF Uganda has spe-cialised in large loans over long periods. We have also charged interest on the declining balance. This has been disastrous and the level of client arrears has made the situation worse. To tack-le the problem we have reduced the size of loans and the length of the repay-ment period.

We have not handled arrears in a pro-fessional way. Recommended practice is firstly to deduct any interest arrears and then to use any balance remaining against the principal. By contrast, we have used payments either against the principal sum lent or have divided the payment equally between the principal and outstanding interest.

In order to improve our performance we have brought in new procedures. We now constantly monitor clients to help us remind them when their due date for payment is near. We have simplified our process of loan application and disbursement so clients can get their loans when they need them and not have to wait for a long time. We emphasise clients must be treated as customers and not beggars if we are to have a meaningful relationship with them. We also make clear from the beginning the con-tractual relationship which exists between the client and credit provider. I hope as we in ECLOF Uganda con-tinue to improve our performance, we shall one day be able to overtake the speeding car that is ECLOF Bolivia!

Michael Kisembo, Programme Manager, ECLOF Uganda