Uganda wallet big , IMF approves USD 491.5 M loan amidst Covid-19 pandemic scare

Uganda wallet big , IMF approves usd492 M loan amidst Covid-19 pandemic scare

The Executive Board of the International Monetary Fund (IMF) approved a disbursement of SDR361 million (about US$491.5 million or 100 percent of quota) for Uganda under the Rapid Credit Facility (RCF).

It 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 Ugandan economy is being severely hit by the COVID-19 pandemic and, in particular, such key sectors as services (tourism), transport, construction, manufacturing and agriculture.

The challenging external environment is curtailing remittances and foreign direct investments.

The pandemic has also exacerbated the challenges posed by heavy rains in early 2020 and the ongoing locust invasion.

Areas around lakes Victoria have received heavy rain fall.

Destroying crops, property and infrastructure, like in Mpigi the road Lukolo-Ssenyondo, Bunjakko submerged into water.

Businessmen and farms have lost a lot of money in transport, and products into water as they try to transport them to main land.

Areas around Lake Kyoga are suffering the same, the government order residents to quit some areas due to floods.

To contain the impact of the pandemic, the authorities have increased health spending, strengthened social protection to the most vulnerable, and enhanced their support to the private sector.

The Bank of Uganda has appropriately reduced interest rates and provided liquidity to safeguard financial stability, while maintaining exchange rate flexibility.

Many Ugandans who borrowed money from Banks are unable to meet thier loan payments currently.

The weakening economic conditions emanating from the Covid-19 pandemic have put significant pressures on revenue collection, expenditure, reserves and the exchange rate, creating urgent large external and fiscal financing needs.

The IMF continues to monitor Uganda’s situation closely and stands ready to provide policy advice and further support as needed.

Authorities have also committed to put in place targeted transparency and accountability measures to ensure the appropriate use of emergency financing.

Ugandans have hope to receive services and relief during this period of Covid-19.

Many people are suffering sleeping empty stomachs, have no eccess to medical facilities which threatens thier life.