• No_Ads
External debt is payable, finance ministerPublish Date: Dec 14, 2013
External debt is payable, finance minister
  • mail
  • img
Finance minister, Maria Kiwanuka

By David Mugabe

The finance ministry has reassured the country that its external debt portfolio is manageable and that the country has the ability to pay back.

Responding to the question of the country’s growing external debt portfolio even with continued borrowing, Kiwanuka said international credit rating agencies had given Uganda a big vote of confidence of a B+ that only five countries in sub Saharan Africa hold. These ratings illustrate how good a country is to lend money.

“Our debt is mostly concessional like from the World Bank with interest rate at 1% fixed,” said Kiwanuka.

The minister said decisions are mostly on the ability to pay back, not how big the debt is. Kiwanuka said the country has avoided commercial loans and that borrowings are mainly for infrastructure and not consumption.

The external and domestic debt is growing by close to 2% and is today about sh15 trillion. The World Bank is calling for more savings to spur investments.

Makhtar Diop, the World Bank vice-president for Africa, said currently Africa faces low levels of savings compared to other parts of the world yet the continent needs more investments to spur growth.

Some of the proposals being fronted are special purpose vehicles with legal and political guarantee that can attract more capital into the continent. The capital markets have been identified as a platform for mobilising savings and money for investments.

Diop also cautioned against consumption spending, saying the available resources should be invested in the productive sectors and improving competitiveness.

Pension reforms and the unleashing of the huge cash troughs have been highlighted as a possible avenue to generate capital for investments. The pensions sector is under reform. A Bill, the Retirement Benefits Sector Liberalisation Bill, is currently before Parliament.

The statements, comments, or opinions expressed through the use of New Vision Online are those of their respective authors, who are solely responsible for them, and do not necessarily represent the views held by the staff and management of New Vision Online.

New Vision Online reserves the right to moderate, publish or delete a post without warning or consultation with the author.Find out why we moderate comments. For any questions please contact digital@newvision.co.ug

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Fagil, Bukenya feud: Police deploy at UNEB
Very Important People Protection police Unit (VIPPU) has pitched camp at the Uganda National Examinations Board (UNEB) headquarters in Ntinda a Kampala suburb....
Involve traditional leaders to combat malaria-Speaker
The Speaker of Parliament, Rebecca Kadaga has called upon health experts and officials to involve cultural leaders to fight malaria....
PM defends voluminous ID registration forms
PM Amama Mbabazi makes a spirited defense of what some critics of the ongoing national ID registration have described as ‘voluminous registration forms’...
Kamwenge town council endorses Museveni
Kibale County in Kamwenge district is the latest constituency to throw its weight behind the Kyankwanzi resolution back President Yoweri Museveni’s 2016 presidential bid....
Amnesty commission needs sh4.6b for rehabilitation
The Amnesty Commission requires an extra funding of sh4.6b to rehabilitate and reintegrate the backlog reporters if sustainable peace is to be realized, the internal affairs minister, Gen Aronda Nyakairima, has said....
Tororo district council honours the late Oketcho
Tororo district leaders have hailed fallen former Budama North constituency MP William Oketcho as a unifying factor who always preached peace even during the time when district was sharply divided on tribal issues over the division of the district....
WIll the national ID registration process be completed in the scheduled 4 months timeframe?
Can't Say
follow us
subscribe to our news letter