Government seeks for UGX 1.7 trillion for COVID-19 emergency

By; Francis Lubega

03^rd April 2020

Government has requested for Parliament approval of Ugx 1.7 trillion loan request, to provide sufficient financial support and to mitigate the negative effects on the economy by the COVID-19 Pandemic.

The loan request was tabled before the House on Thursday April 02, 2020, by state minister of finance in charge of planning, David Bahati.

According to the loan request the money will be borrowed from different international banking institutions.

Bahati said, the government wants to borrow $100m (Ugx.378.5b) for the current financial year 2019/20 and $99.8m (Ugx.377, 743b) for the next financial year 2020/2021 from the International Development Association (IDA) of the World Bank Group.

He said the money would go towards financing of the health sector, competitiveness and enterprise development.

Bahati noted that the government would borrow up to $250m (Ugx.946.2b) from the International Monetary Fund (IMF) for balance of Payments support, to the Bank of Uganda.

Responding to the government loan request, Speaker Rebecca Kadaga, sent the request House’s committee on National economy, to scrutinize the request.