No More loans to Uganda – World Bank
By Serestino Tusingwire
The World Bank has decided to suspend lending more money to Uganda over an outstanding debt.
According to Finance Minister, Matia Kasaija, Uganda’s outstanding public debt is projected to hit a staggering $7.6billion by end of this financial year compared to $7.2billion, last year.
“The World Bank Group took a decision to withhold lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the Government of Uganda,” the bank said in a statement.
The World Bank said it will continue to “actively work with the Ugandan authorities to address the outstanding performance issues in the portfolio, including delays in project effectiveness, weaknesses in safeguards monitoring and enforcement, and low disbursement.”
“The bank remains committed to work closely with the Government of Uganda, as well as with other stakeholders, to support the country’s development and ensure that all World Bank-supported projects deliver tangible and long-lasting results to all Ugandans, especially the poor and vulnerable.”
This is the second time in a space of less than a year that World Bank is withholding funding to Uganda, the first being in December 2015.
The move by the World Bank to withhold lending to Uganda is most likely to interrupt commercial and trade finance, through reduction of both Government and private sector access to foreign loans; and reduce foreign exchange flows to Uganda.