The Executive Board of the International Monetary Fund (IMF) has approved a 36-month arrangement under the Extended Credit Facility (ECF) for Uganda in an amount equivalent to US$1 billion (about Shs3.6 trillion) to support the post-COVID-19 recovery and the authorities’ plan to increase households’ incomes and inclusive growth by fostering private sector development.

SEE ALSO: IMF COVID-19 $491.5 m loan to be pumped in NRM campaigns

Ugandans write to IMF seeking cancellation of $1b loan to M7 dictatorship

Uganda’s economy was said to be hit hard by the COVID-19 crisis. 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.

“Uganda’s economy has been severely impacted by the COVID-19 global pandemic, which reversed decade-long gains in poverty alleviation and opened up fiscal and external financing gaps. The authorities’ program, supported by a new arrangement under the Extended Credit Facility, focuses on keeping public debt on a sustainable path while improving the composition of spending and advancing structural reforms to create space to finance private investment, foster growth and reduce poverty,” said the Deputy Managing Director and Acting Chair, Tao Zhang in a statement.

Last year, Museveni borrowed $491.5 million (about 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. Much of the loan was used to facilitate his presidential campaign trail according to reliable reports from the NRM party secretariat.

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