Recovery of Debts Due to Banks: A Need for Debts Recovery Tribunal and Securitisation Law in Tanzania - A Leaf Plucked from Indian and UK Jurisprudence

Abstract

Like any other developing countries, Banks are the foundation of the Government's financial sector in Tanzania. They have been playing a positive role in promoting the country's economy. So, the development of banking institutions is one of the essential ingredients that play a crucial role in stimulating the financial institution's development and economic growth simultaneously in Tanzania. Banks and financial institutions at present experience considerable difficulties in recovering loans and enforcement of securities charged within them. The existing procedure for recovery of debts due to banks and financial institutions has blocked a significant portion of their funds in productive asserts, the value of which deteriorates with the passage of time, in this context therefore, Effective legal machinery and timely dispute resolution mechanisms between banks and customers are necessary for the growth of the banking sector. This article, therefore, is devoid of substantiating the need for a specialized Tribunal for recovery of debts due to Banks in Tanzania jurisdiction and the need for securitization Law.