{"id":13149,"date":"2021-06-29T13:35:07","date_gmt":"2021-06-29T13:35:07","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/?p=13149"},"modified":"2021-06-29T12:15:24","modified_gmt":"2021-06-29T12:15:24","slug":"imf-approves-shs3-5t-loan-for-uganda-to-fight-covid","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid","title":{"rendered":"IMF approves Shs3.5t loan for Uganda to fight Covid"},"content":{"rendered":"

Africa-Press<\/a> – Uganda<\/a>. <\/strong><\/span>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 Shs3.5 trillion) to support the post-COVID-19 recovery and Uganda\u2019 plan to increase households\u2019 incomes and inclusive growth by fostering private sector development.<\/p>\n

Approval of the ECF arrangement enables immediate disbursement of about US$258 million, usable for budget support, according to a Monday statement issued by the Fund.<\/p>\n

\u201cThis follows Fund emergency support to Uganda under the Rapid Credit Facility (RCF) in May 2020 of SDR361 million (100 percent of quota or US$491.5 million, see Press Release No 20\/206),\u201d the statement issued by the Fund’s press officer, Mr Andrew Kanyegirire reads in part<\/p>\n

Acording to IMF, Uganda\u2019s economy was hit hard by the COVID-19 crisis.<\/p>\n

\u201cDecade-long gains in poverty reduction were reversed, fiscal balances have deteriorated, and pressures on external buffers have intensified. A mild recovery is underway in some sectors, with economic growth in FY 21\/22 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.\u201d<\/p>\n

Uganda government\u2019s programme, enshrined in the third National Development Plan (NDPIII), is built around the principles of private sector-led inclusive growth and public sector reforms to strengthen governance and transparency. It envisages multi-year fiscal consolidation while increasing priority and high-quality infrastructure spending. The programme will include reforms to increase domestic revenue, foster public sector efficiency and strengthen governance while preparing the ground for sound management of oil revenues. The programme will strengthen the monetary policy and financial sectors frameworks while fostering development, including through financial inclusion.<\/p>\n

At the conclusion of the Executive Board\u2019s discussion, Mr Tao Zhang, Deputy Managing Director and Acting Chair, said: \u201cUganda\u2019s 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\u2019 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.\u201d<\/p>\n

According to him, fiscal consolidation, appropriately based on both revenue and expenditure measures during the first year of the authorities\u2019 programme, seeks to stabilize the public debt ratio while increasing social spending, including for vaccines.<\/p>\n

\u201cThe implementation of the authorities\u2019 Domestic Revenue Mobilization Strategy, better management of public investment, control of domestic arrears and advances in cash management will support the fiscal strategy. Prudent debt management is important to reduce vulnerabilities, particularly given Uganda\u2019s moderate risk of debt distress. Every effort should continue to be made to seek concessional financing and pursue relief under the Debt Service Suspension Initiative. Contingency plans put in place would help mitigate risks,\u201d Mr Zhang added.<\/p>\n

He further noted that an accommodative monetary policy stance remains appropriate and the exchange rate should continue to function as a shock absorber.<\/p>\n

\u201cEfforts to increase central bank independence should also be sustained. Flexible use of banks\u2019 capital buffers should be considered to address uncertainties surrounding the COVID-19 pandemic. Close attention should be paid to minimizing financial stability risks, including through strict adherence to accounting and prudential standards, and modernizing the banking resolution and emergency liquidity assistance frameworks,\u201d he added.<\/p>\n

According to him, advancing governance reforms remains crucial to support transparency and private sector development.<\/p>\n

\u201cThe authorities have made progress in publishing information on audits and the use of COVID-19 funds, but further work is necessary to enhance the AML\/CFT framework and strengthen the accountability of high-level officials. Promoting human capital development and financial inclusion, including through wider credit bureau coverage and collateral requirements will further support the authorities\u2019 inclusive growth agenda. Accelerating digitalization would enhance these efforts,\u201d he said.<\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. 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 Shs3.5 trillion) to support the post-COVID-19 recovery and Uganda\u2019 plan to increase households\u2019 incomes and inclusive growth by fostering private sector development. Approval of the ECF […]<\/p>\n","protected":false},"author":84,"featured_media":13148,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,7,8,12],"tags":[233,240,234],"class_list":["post-13149","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-head-lines","category-homepage-english","category-policy","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nIMF approves Shs3.5t loan for Uganda to fight Covid - Uganda<\/title>\n<meta name=\"description\" content=\"The International Monetary Fund (IMF) has approved a 36-month arrangement under the Extended Credit Facility (ECF) for U ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"IMF approves Shs3.5t loan for Uganda to fight Covid\" \/>\n<meta property=\"og:description\" content=\"The International Monetary Fund (IMF) has approved a 36-month arrangement under the Extended Credit Facility (ECF) for U ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2021-06-29T13:35:07+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/06\/img-60db0ebc0708f.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"480\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"IMF approves Shs3.5t loan for Uganda to fight Covid\",\"datePublished\":\"2021-06-29T13:35:07+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid\"},\"wordCount\":664,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2021\/06\/img-60db0ebc0708f.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"head lines\",\"homepage-english\",\"policy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/imf-approves-shs3-5t-loan-for-uganda-to-fight-covid\",\"name\":\"IMF approves Shs3.5t loan for Uganda to fight Covid - 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