IMF approves release of $491.5 million loan money to Uganda to respond to COVID-19

958FollowersFollow

Although we are headquartered in Washington D.C. USA, our reporters and editors are working around the globe to cover what you care about. We invite you to donate to our fundraiser to help us keep our quality news free and available to all.  

The International Monetary Fund (IMF) has approved the release of $491.5 million loan money to Uganda to respond to COVID-19, the Fund said in a statement in Washington D.C. on Wednesday.

At least 40 African nations have approached the IMF requesting for massive loans to combat COVID-19.

Just over a week ago, the IMF approved the humongous loan of $3.4 billion to Nigeria after similars loans to Ghana in West Africa and Ethiopia in the East.

[read_more id="2" more="Read full article" less="Read less"]

The loans are needed to fund government spending but there were fears the money could be stolen.

For Uganda, the IMF said the economy is “severely affected by the COVID-19 pandemic”, and the money would be used to address the urgent balance-of-payments and fiscal needs.

More specifically, the loan secured under the Rapid Credit Facility (RCF) “will help finance the health, social protection and macroeconomic stabilization measures, meet the urgent balance-of-payments and fiscal needs arising from the COVID-19 outbreak and catalyze additional support from the international community”, the IMF said.

Mr. Tao Zhang, IMF Deputy Managing Director and Acting Chair, the global COVID-19 pandemic is expected to “severely hit the Ugandan economy through several channels, with detrimental effects on economic activity and social indicators.”

He said the external and fiscal accounts are expected to deteriorate, creating substantial urgent external and fiscal financing needs.

“The IMF’s emergency financial support under the Rapid Credit Facility, along with the additional donor financing it is expected to help catalyze, will help address Uganda’s urgent balance of payments and budget support needs,” Zhang said.

He implied the loan money was justified because with the current climate, “a temporary widening of the fiscal deficit is warranted in the short term to allow for the implementation of the response plan.”

“Despite a temporary worsening of debt indicators and heightened vulnerabilities, public debt is expected to remain sustainable. The authorities remain committed to ensuring debt sustainability, including through their efforts to enhance revenue collection and strengthen public investment management,” he added.

[/read_more]

Simon Ateba
Simon Ateba
Based in Washington, District of Columbia, United States of America, Simon leads a brilliant team of reporters, freelance journalists, analysts, researchers and contributors from around the world to run TODAY NEWS AFRICA as editor-in-chief. Simon Ateba's journalistic experience spans over 10 years and covers many beats, including business and investment, information technology, politics, diplomacy, human rights, science reporting and much more. Write him: simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

Joe Biden wins last presidential debate against Donald Trump

Joe Biden was surprisingly aggressive, it was perhaps the best debate he has had in 2020.Republicans...

Damning report finds detainees in Iran were sexually abused and given electric shocks in gruesome post-protest crackdown

Iran’s police, intelligence and security forces, and prison officials have committed, with the complicity of judges and prosecutors, a catalogue of...

Nigerians in USA to hold ‘mother of all protests’ against police brutality and bad governance in their home country

Nigerians in the United States would hold the 'mother of all protests' on Saturday against police brutality and bad governance in...

Nearly 60 million Americans have already voted representing 43% of total votes counted in 2016

At least 59.3 million Americans have already voted, according to data compiled by the U.S. Elections Project, putting the 2020 elections on track to...

What the Joseph Robinette Biden presidency would mean for Africa – Perspectives by Simon Ateba

Joseph Robinette Biden Jr., the 47th vice president of the United States in the Obama administration from 2009 to 2017, is...

Finally, Nigerian President confirms killing of peaceful protesters

President Muhammadu Buhari on Sunday confirmed the killing of peaceful protesters in the country last week by security forces.

Nigerians in USA hold protest against bad governance and police brutality in their home country

Nigerians in the United States on Saturday held a protest against bad governance and police brutality in their home country, shed...

Nearly 70 million Americans have already voted, representing more than 50 percent of all votes counted in 2016

Nearly 70 million Americans have already voted, according to data compiled by the U.S. Elections Project, putting the 2020 elections on track to shatter...

Africa records 32,000 COVID-19 cases and 800 deaths in one week with South Africa, Kenya and Ethiopia reporting highest numbers

Africa has recorded 32,000 new cases of COVId-19 and 800 new deaths over the past one week, according to new data...

Amnesty International USA offended by Trump admin’s claim court forcing it to separate immigrant families

Amnesty International USA on Tuesday described as "pure disinformation" a claim by the Trump administration that the court is forcing it...

Amnesty International outraged over Ethiopia’s decision to ban protests against ethnically motivated killings

Ethiopian authorities have banned peaceful protests against ethnically motivated killings which were due to take place on October 28, in direct...

Ramaphosa unveils statue of former ANC president and anti-apartheid activist OR Tambo

President Cyril Ramaphosa on Tuesday unveiled a 29.6-foot-tall statue of former ANC president and anti-apartheid activist Oliver Reginald Tambo, and delivered...

64.7 million Americans have already voted, representing nearly 47 percent of all votes counted in 2016

At least 64.7 million Americans have already voted, according to data compiled by the U.S. Elections Project, putting the 2020 elections on track to...

Six years after, South Africa police arrest suspects over murder of former Bafana Bafana and Orlando Pirates goalkeeper Senzo Meyiwa

President Cyril Ramaphosa on Monday congratulated the South African Police Service for the breakthrough in the investigation and arrests following the...

Nearly 70 million Americans have already voted, representing more than 50 percent of all votes counted in 2016

Nearly 70 million Americans have already voted, according to data compiled by the U.S. Elections Project, putting the 2020 elections on track to shatter records.That number is higher than all the early votes cast in 2016 and more than 50 percent of all the votes counted in 2016.Of the 69.4 million Americans who had already voted as of Tuesday...

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

error: Alert: Content is protected !!
Share
Tweet
Share