The Executive Board of the International Monetary Fund (IMF) has approved a 36-month arrangement under the Extended Credit Facility (ECF) of $1 billion about Shs 3.55 trillion to Uganda.
A statement from the fund notes that the loan will support Uganda’s post-COVID-19 recovery and plans to increase households’ incomes and inclusive growth by fostering private sector development.
This comes a few months after the Auditor General warned that the country’s national debt had escalated and is becoming unsustainable.
This Approval enables immediate disbursement of about $258 million, usable for budget support.
The fund in May last year under the Rapid Credit facility gave Uganda shs491.5 million as emergency support.
Uganda’s economy has been hit hard by the COVID-19 crisis with the number of infections increasing every day.
