Uganda says it will borrow $566mln, including from Afreximbank
KAMPALA - Uganda plans to borrow a total of 500 million euros ($568 million) from three lenders including Afreximbank to finance infrastructure development, Finance Minister Matia Kasaija said.
Lawmakers on Thursday approved the government request to acquire the loans despite resistance from opposition lawmakers who have criticised the country's growing debt burden.
At least 270 million euros will be borrowed from Cairo-based African Export-Import Bank (Afreximbank), while 230 million euros will be jointly lent by Ecobank Uganda and Development Bank of Southern Africa, Kasaija told parliament.
He did not give a timeline for when the money will be borrowed.
Uganda's total stock of public debt jumped 18% to $29.1 billion last year on the back of increased domestic borrowing, according to the finance ministry.
The rising debt triggered a ratings downgrade last year. The government says the borrowings have been used to drive economic growth. ($1 = 0.8811 euros).
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