By Francis Lubega
31st Oct 2022
The Government is set to borrow over 1.7trillion shillings from Standard Chartered bank to finance both development and infrastructural works in the current financial year 2023/2023.
The request has been tabled by the State Minister of Finance Henry Musasizi before the parliamentary National Economy committee for consideration or rejection.
According to the Minister Musasizi, the loan is 455.5 million Euros and 464.14 million dollars which is equivalent to 1.7 trillion shilling and will be repayable in 10 years at the annual repayment interest of 15%.
He said that the ministry of finance came to conclusion with Standard chartered bank after studying loan conditions with other banks like African development bank, Islamic bank, Stanbic bank and others whose repayment conditions were unfavorable for Uganda.
However Mps on the committee questioned the minister on the poor performance of loans saying that most of the loans borrowed are either misused or not utilized.
Meanwhile, the opposition Forum for Democratic Change (FDC) through the party Deputy Secretary General Harold Kaija has asked parliament to stop government from acquiring an extra 1.7 trillion loan from the International Monetary Fund to control Ebola as well as facilitating salaries and wages of public servants saying such loans for non profitable ventures or projects is costly to Ugandans.
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