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· Low income countries (LICs), among them Uganda, need to be relieved of the heavy debt burden, according to Uganda Debt Network (UDN), a national policy advocacy organization.
· The advocacy group pitches for total debt cancellation as opposed to debt service suspension to bail out the economies of low income countries like Uganda.
Low income countries (LICs), including Uganda, need to be relieved of the heavy debt burden, according to Uganda Debt Network (UDN), a national policy advocacy organization. The advocacy group pitches for total debt cancellation as opposed to debt service suspension to bail out the economies of low income countries like Uganda. This should also be followed by instituting a 10-year no-interest on new debts regime, the organization argues. Debt repayment has remained a key constraint to comfortable Fiscal space and liquidity positions for Uganda.
Uganda paid US$42.8 million (about Shs157.7billion), including nearly another US$5 million interest payment (about Shs18.4billion), between January and December 2019 as external debt servicing alone. This works out to approximately Shs160 billion off estimated Shs19 trillion domestic revenues under the Shs40 trillion total national budget for fiscal period 2019-20.
