Gov’t to borrow Ugx3T to combat Covid-19

The government has presented a motion before Parliament seeking approval to borrow Shs3T as budget support to avert effects of Coronavirus on Uganda’s economy.

The motion was tabled last evening by State Minister for Planning, David Bahati who expressed government’s interest to seek funding from World Bank $300M  approximately Shs1.136T  for budget support for financial year 2019/20 to provide financial resources to the Health sector.

$491.5M about Shs1.859T will be got from International Monetary Fund to support Bank of Uganda in stabilizing Uganda’s currency.

Bahati told Parliament that although government had on April 2, 2020, tabled a Motion seeking Parliament approval to borrow a loan of up to $100M for financial year 2019/20 and $90M for financial year 2020/21 from the International Development Association of the World Bank Group to provide sufficient financial resources to the health sector.

According to Government, the World Bank informed the Ministry of Finance that they have increased their funding proposal towards COVID-19 from $100m for financial year 2019/20 and $90m for financial year 2020/21 to $300m.

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