This archive report was first published on 5 December 2019.
On December 5, 2019, Uganda's Finance Ministry announced plans to borrow 600 million euros ($661 million) from international banks to address a budget deficit.
The move comes after domestic revenue collections fell short by 9 percent, with delays in implementing tax-generating measures contributing to the shortfall.
The International Monetary Fund has warned that Uganda's debt pile could surpass 50 percent of its gross domestic product in 2021/2022, heightening concerns about the country's financial stability.
The borrowed funds will be sourced from a local unit of South Africa's Standard Bank and regional Trade Development Bank, according to documents posted on parliament's website.
