KIGALI - Following the recent arrest of 14 suspected loan sharks for running the illegal money lending business popularly known as Banque Lambert, Central Bank Governor Francois Kanimba says the scheme can operate but under a regulated environment.
“Since the Central Bank regulates the industry, we cannot sit back as these people operate illegally and cause losses to the public,” Kanimba told The New Times.
“If they claim they are facilitating business operators, then they should submit their applications to the Bank.”
“We can sit and discuss terms under which they can operate instead of operating illegally,” he said.
He said schemes similar to these operate in some parts of Europe but emphasised that such schemes are known and fully registered and licensed for the purposes of regulation.
According to the Governor, loan sharks offer soft conditions to loan seekers as compared to regular banks, making more people run to them for credit.
“The problem is some bank officials who are also involved in this illegal money business,” Kanimba said.
Meanwhile, Prosecution confirmed yesterday that the 14 suspects arrested in connection with the vice have all been released on bail.