3SharesThe International Monetary Fund-IMF has on Wednesday approved USD 491.5 million (1.9 trillion Shillings) in emergency funding loans for Uganda to address the impact left by COVID-19 on the economy. The payout is 100 percent of Uganda’s quota. IMF, says the money will help Uganda fund health, social protection, and macroeconomic stabilization measures. The money […]
The International Monetary Fund-IMF has on Wednesday approved USD 491.5 million (1.9 trillion Shillings) in emergency funding loans for Uganda to address the impact left by COVID-19 on the economy.
The payout is 100 percent of Uganda’s quota.
IMF, says the money will help Uganda fund health, social protection, and macroeconomic stabilization measures.
The money is approved under the Rapid Credit Facility program that is meant to stabilize third world economies that have been hard hit by the novel virus.
Tao Zhang, the IMF Deputy Managing Director the money will support Uganda’s urgent “budget needs”.
The government recently approved a supplementary budget of close to 1 trillion Shillings to spend during the pandemic means the country must aside some of the budgeted priorities.
The IMF cash will cover the gap left by shortfalls in tax collection due to the pandemic.
According to official estimates, Uganda has been looking for funds to handle any shortfalls expected to be in the highs of Shs 3trillion.
the loan statement also reads that; “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.
Neighbors have also benefited under the Rapid Credit Facility program with Kenya getting (USD739) and Rwanda (USD109.4).
Uganda has so far confirmed 100 cases of COVID-19 and 55 recoveries with 0 Deaths.
