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Uganda has requested for another Shs 3 trillion loan - IMF

Finance minister Matia Kasaija

Finance minister Matia Kasaija

The Washington-based International Monetary Fund (IMF) has revealed Uganda government approached it for another loan and discussions are progressing well.

IMF spokesperson Gerry Rice yesterday revealed that Uganda requested for a three-year loan arrangement. The loan could be in the range of $900 million (about Shs 3.1 trillion), according to the journalist who asked the question.

“It's reported that Uganda is looking for a $900 million three-year package from the IMF related to spending driven by COVID-19 response. Is that true, can you confirm it? Where does that stand?” Mathew Lee, a journalist with AP inquired. 

 Though Rice confirmed the three-year arrangement, he did not give a specific amount Uganda requested. 

“The exact final amount will depend on Uganda's estimated balance of payments needs and the strength of policies the authorities commit to implement. And, of course, as is always the case, the ultimate approval of the arrangement rests with our executive board,” Rice said.    

Uganda last year borrowed $491.5 million roughly Shs 1.7 trillion under the Rapid Credit Facility, a program that provides access to rapid and concessional financial assistance to low-income countries facing urgent balance of payments needs. 

Ministry of Finance spokesperson Jim Mugunga declined to respond to any question, arguing that questions should be directed to the IMF. 

“Why didn't you ask IMF who said it?" Mugunga said dismissively. "I don’t speak on behalf of IMF. How do you ask me to confirm something that I have not said? Ask the one who said it please!”

Finance Minister Matia Kasaija did not pick calls. This loan will likely trigger more questions on Uganda’s skyrocketing public debt. Uganda’s total public debt hit a record Shs 65.82 trillion as of December 2020, up from Shs 49 trillion in 2019, according to the Auditor General's report. 

And this was 47.2 per cent debt to GDP ratio, compared to 38 per cent as of December 2019. Almost five months into 2021, Uganda’s debt to GDP ratio is heading past the 50 per cent debt-to-GDP ratio threshold set by IMF for developing countries because parliament has been approving more loans. 

Julius Kapwepwe, the executive director of Uganda Debt Network says borrowing is inevitable as long as Uganda has not reconfigured its expenditure.

“For instance, if you have a bloated recurrent expenditure, it does not matter how far you borrow. Similarly, if you have runaway corruption, it does not matter how much you borrow,” he argued.

In such a situation, he argues government cannot get out of debt through borrowing.   

Comments

0 #11 Ibra 2021-05-08 16:48
]It’s unclear why the government kept the IMF $900m loan application a secret until the IMF told the Press to alert Ugandans.

Where is the transparency and why is the government borrowing so much? We hope the government will be able to meet the set conditions including ant corruption and accountability.

If you can’t get the donor handouts due to human rights violations then you have not choice but to borrow plus tax wananchi to death!
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0 #12 Akot 2021-05-08 18:52
Quoting Pipi Cax:


That money is given to NRM.


Thanks, so,

Will IFM continue financing Museveni's evil government that does not serve Ugandans, but has tribalistically divided & will rule for life & his military son takes his place when he dies of old age?

Palestinians didn't fight Irsaelis from the time D.Trump cut off the free money US gives them, but now that J. Biden has restored the free millions without conditions attachet to, Palestinians are fighting Israelis!

Will IFM continue financing NRM & pretend Museveni has build the tribally divided ruled zone & Uganda is a democracy with social/public services?
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0 #13 Akot 2021-05-08 19:07
kabayekka, thanks.

IFM turns blind eyes-deaf ears to dictatorship & lend money that ensure demons get rich as it's not them, but the poor they oppress who pay back!

UN lives on miseries of people in shitholes while shaking hands with useless rulers/dictators, praying bad rule continues, thus more rejugees, migrants so that UN gets more money!

Why are developed well governed countries still membership of UN that has outlived it's usefullness & become money making body living on miseries of migrants, refugees, thus assuring continuity of bad rule/dictatorship in shitholes?

Ugandans MUST wake up or they are doomed for good, especially as they have assured Museveni's 40 years of legitimate tenure of office!
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0 #14 Akot 2021-05-08 19:14
Quoting Lysol:
Uganda is one of the poorest heavily indebted countries in the world.

Uganda has created a greedy consumers class which live beyond their means,...

The corrupt regime will continue to shamelessly borrow in order to sustain itself in power and the debts will be left for the next generation...


Thanks.

Will IFM, like UN, go on financing/helping Museveni destroy Uganda for good?

EU finally became awake & didn't send observers at last fake election!

But, of course, it's Ugandans alone who have the power, in UNITY, to bring down Museveni & give themselves a new start!

When will tribal leaders give chance to UNITY, without which, Ugandans are slaves of migrant Museveni & family for good, while the outside world watches in silence?
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0 #15 Akot 2021-05-08 19:18
Quoting Byamukama Patrick:
How long shall my mother land keep in debts?

borrowing trillions of money, but the problem is that the money doesnt do what they've borrowed it for, it is instead enjoyed by few individuals and in the end, the wanainch suffers with paying.


Thanks.

Time the wanainchi bring down the tribalistic system, UNITE, to block Museveni & family!

Only Ugandans have the legitimacy, need & power to bring change!

Museveni & family don't need change, right?
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0 #16 Akot 2021-05-08 19:28
Lakwena, thanks.

Isn't it time Ugandans start looking at themselves in a zone without Museveni?

Museveni is protected by Ugandans through;

- the tribalistic system,
- fake elections!

WHY, when all Ugandans need are;

- bring down the tribalistic system,
- UNITE?

Even Libyans who were tribally divided, but not constitutionally by Kadhafi, finally woke up to UNITE to show him way out!

Why are Ugandans ensuring Museveni rules them for life & leave the post to his son, when all they have to do are; bring down the tribalistic system & UNITE?

Why are Ugandans afraid to live without Museveni & family?
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0 #17 Akot 2021-05-08 19:35
Let's remind Ugandans/IMF of how well Remase put the situation;

[Remase
Fellow Ugandans, for 35 years M7 has collected taxes in billions of dollars and/or trillions of shillings, what is there to show for it?

M7 admits that his govt is full of kawukumi, the most corrupt to the core, M7 being the head of it. M7 is given billions of money every year as presidential donation! How much does he donate and to who?

M7 controls trillions of shillings every year, which are, defence/military money, state House, presidential travel,...!

All that taxpayer's money is given to M7 and requires no accountability! So, why should we pay more taxes?

Yet M7 is given billions every year as donation money which ends up in his pocket! When is enough enough?
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