Economists condemn Shs1.7 trillion loan approval
Economists have expressed fear that the latest Shs1.7 trillion loan recently approved by parliament will increase Uganda’s public debt portfolio from Shs79 trillion to Shs80.7 billion.
Parliament last week approved a commercial loan of Shs1.7 trillion that government will get from foreign lenders; Nippon Export and Investment Insurance (NEXI), a Japanese insurance firm, and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) brokered through Standard Chartered Bank.
Speaking at an online debate on a nation choking on debt organized by the Alliance for Finance Monitoring (ACFIM), Moses Mushiime, a lawyer and economist condemned government’s decision to go for a commercial loan which is not conditional as opposed to a concessional loan that comes with friendlier terms.
He further wonders why government opted to work with a broker like Standard Chartered Bank instead of contacting multinational companies with better deals
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