International Monetary Fund (IMF) Adds Uganda One Billion-Dollar Loan To Fight The Covid-19 Pandemic, Despite Uganda’s Big Debt Burden.

The International Monetary Fund (IMF) has approved a one-billion-US dollar loan to finance Uganda’s response to the Covid-19 crisis over the next three years. This loan has been added to a 492Million Dollar Loan Uganda recently got.

The international financing institution in a statement posted on its website late on Monday said the pandemic has caused economic and social strife in the East African country leading to a reversal of anti-poverty gains, deterioration of fiscal balances, and put pressure on external buffers.

IMF on Twitter: "What are the goals of Uganda's new economic program,  supported by the IMF? 1. Support pandemic response and recovery 2.  Strengthen governance and transparency 3. Preserve debt sustainability Learn

The institution said the approval enables the immediate disbursement of about $258 million to start on the response and help sustain a post-crisis inclusive recovery.

“Reforms will focus on creating fiscal space for priority social spending, preserving debt sustainability, strengthening governance, and enhancing the monetary and financial sector framework,” the statement said.

IMF said some sectors of the economy are experiencing mild recovery, with economic growth in the financial year 2021/22, which starts on July 1, expected to reach 4.3 percent before returning to pre-pandemic rates of 6-7 percent in the medium term.

“The outlook remains highly uncertain, with risks tilted to the downside, including from a resurgence of tighter containment measures linked to higher Covid-19 positivity rates,” the statement said.


Recommended For You