Uganda might search suspension of its public debt compensation to keep away from chapter, the finance ministry stated Monday, April 27. problem.
as reported from Kampala, Lucie Mouillaud
Finance Minister Matia Kasaija confirms this: he won’t hesitate to renegotiate the deadlines for compensation of state credit. The objective is to keep away from chapter for Uganda’s main collectors, together with China and the World Financial institution.
Authorities debt truly reached a report excessive in December 2020: $ 18 billion, an enhance of 35% over the earlier yr. And in June 2021, the central authorities debt is predicted to succeed in the edge of fifty% of GDP.
In query, the rising use of exterior credit score to fulfill the world Covid-19 pandemic. The financial penalties of the well being disaster have additionally largely affected central authorities revenues. In 2020, GDP progress was thus restricted to 1.1%, removed from the 6.8% enhance in 2019.
A number of measures are at present being mentioned in the federal government to compensate for this discount in public revenues, specifically the enhance in sure taxes, corresponding to these on petrol.
►Learn additionally: The world is taking a look at African debt
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