Uganda is yet to receive a tune of 3.5 trillion as Covid-19 response after a staff team from the International Monetary Fund (IMF) led by Mr. Amine Mati conducted virtual missions to Uganda from February 2-March 5 and from May 25-May 28, 2021 to discuss a 36-month program under the Extended Credit Facility. the Finance Ministry confirmed on Wednesday.
However, this comes a few months after the Auditor General (AG), Mr John Muwanga, warned that the country’s national debt had escalated and that it was becoming unsustainable.
”IMF staff have reached an agreement with the Ugandan authorities on a medium-term program that could be supported by IMF resources of about US$1 billion under the Extended Credit Facility (ECF). The staff-level agreement is subject to IMF management approval and Executive Board consideration which is expected in the coming weeks.
The IMF yesterday said the Shs3.5t loan will help Uganda tackle the near-term impact of Covid-19 and its recovery by safeguarding macroeconomic stability and generating more inclusive growth.
At the conclusion of the mission, Mr. Mati issued the following resolutions as a way to save the declining economy as a result of the Covid-19 pandemic.
Uganda’s economy has been hit hard by the COVID-19 pandemic that eroded people’s livelihoods. Growth has halved compared to pre-crisis levels and poverty has increased, reversing decades-long gains in wealth creation and inclusion despite the support measures introduced by the authorities.