Establishment of the long awaited Tanzania Teachers Union (TTU) bank still hangs in balance after the union’s just concluded national council failed to put it in the agenda.
Earlier it was announced that the bank would commence operations later this year after its approval by the TTU national council which sat in Morogoro Region late last month.
Speaking to this paper in an interview on Tuesday, the union’s Deputy Secretary General Ezekiah Ulouch, said the council has this year resolved to fight for the rights of the teachers being violated for a long time.
Asked whether the council approved the TTU management to establish the bank, he briefly noted “this was not in the agenda; however details will be released later on.”
It was reported last year that the bank would float 80 percent of the shares to the public retaining the rest for the union.
Initially all the shares were to be sold to the teachers, but due to Bank of Tanzania (BoT) regulations the union was advised to retain only 20 percent.
The bank which was scheduled to start operations late last year could not take off due to, among other things, conditions set by the banker of banks.
He did not disclose the total number of shares to be sold and at what price, but according to the Central Bank, the union is required to have 15bn/- as initial capital.
Teachers have already collected 7bn/-, which was initially needed for the establishment of the bank, but due to change in regulations for setting up a bank they have to sit down and raise the remaining amount.
Teachers only will enjoy the minimum interest in borrowing, while other customers outside the teaching profession will not feel the difference.
Putting in place the bank for teachers was among the resolutions reached at their annual general meeting held last year. The proposal for the bank’s incorporation falls in the union’s five years strategic plan.
Experts say the establishment of the bank would bring relief to teachers since they have been paying hefty interest rates to commercial banks and other financial providers after borrowing.