Economists have expressed fear that the latest Shs1.7 trillion loan recently approved by parliament will increase Uganda’s public debt portfolio from Shs79 trillion to Shs80.7 billion.
Parliament last week approved a commercial loan of Shs1.7 trillion that government will get from foreign lenders; Nippon Export and Investment Insurance (NEXI), a Japanese insurance firm, and the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) brokered through Standard Chartered Bank.
Speaking at an online debate on a nation choking on debt organized by the Alliance for Finance Monitoring (ACFIM), Moses Mushiime, a lawyer and economist condemned government’s decision to go for a commercial loan which is not conditional as opposed to a concessional loan that comes with friendlier terms.
He further wonders why government opted to work with a broker like Standard Chartered Bank instead of contacting multinational companies with better deals
