- The Deputy Governor of the Bank of Uganda, Michael Atingi-Ego has disclosed that Uganda’s public debt has soared to Shs 80 trillion which is 50% of the Gross Domestic Product (GDP).
In a meeting with MPs, The Deputy Governor of the Bank of Uganda, Michael Atingi-Ego has disclosed that Uganda’s public debt has soared to Shs 80 trillion which is 50% of the Gross Domestic Product (GDP). According to Adam Mugume, executive director of Research and Policy at Bank of Uganda, the public debt includes external debt of Shs47 trillion and domestic debt of Shs 33 trillion.
The disclosure has led to worries over Uganda’s ability to meet its debt repayment obligations. IMF and World Bank have always cautioned countries not to allow their national debt to exceed 50% of their GDP.
To avoid putting pressure on Uganda’s foreign reserves, the deputy governor has urged the Ministry of Finance to ensure that, all commercial loans obtained by the government have a grace period of at least five years. He informed that several loans have matured with payments due with a bloating debt service in the next two years. He informed that in 2022/23 Uganda will be paying close to $ 1.8 billion for government imports and debt service. The figure is expected to go up further with Inflation in Uganda rising to 10.7% in October 2022 from 2.7% in January 2022.
Also read;
https://trendsnafrica.com/ugandan-goods-trading-more-outside-eac/
https://trendsnafrica.com/uganda-courts-us-energy-companies/
