Tread carefully on Eurobond — Kasekende
Publish Date: Jun 18, 2014
Tread carefully on Eurobond — Kasekende
Dr. Louis Kasekende, the Deputy Governor Bank of Uganda
  • mail
  • img

By Billy Rwothungeyo

The debate on whether Uganda should issue a Eurobond resurfaced again with Louis Kasekende, the deputy governor of Bank of Uganda saying the country should be wary about the implications of such a move.
Speaking at a post-budget breakfast dialogue organised by Stanbic Bank at the Kampala Serena Hotel, Kasekende said the issuance of a Eurobond could increase Uganda’s debt burden.
“What this means is that it is imposing a burden on you. She (Finance minister Maria Kiwanuka) announced that it (domestic and external debt) is almost 39.8%--excluding the borrowings for Karuma and Isimba dam projects”
Kasekende went ahead to warn about the consequences of increasing debt
“It (debt) places a burden on us, the current generation and future generations. We should be careful calling for excessive government borrowing”
Patrick Ocailap, the deputy secretary to the treasury also chipped in to the debate.
“Our key message has been Eurobond, yes, but fundamentally, Eurobond when and for what?”
“It is very clear that as we move towards a monetary union, Uganda requires substantial borrowing that we may be able to sustain, without crowding out the private sector.”
Kasekende and Ocailap were responding to Phumelele Mbiyo, Stanbic bank’s regional head of macroeconomic research who opened a debate on Eurobond.
“Often, we come around here, with investors who are interested in the Ugandan economy. Some of these investors inevitably ask when Uganda will issue a Euro bond,” Mbiyo said.
Earlier this year, Uganda put on hold plans to issue a Eurobond—and instead opted to get cheap credit from China.
Neighboring Kenya recently issued an Eurobond to raise capital from the international market. 

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

  • mail
  • img
blog comments powered by Disqus
Also In This Section
Online sales dominate
FRENZIED crowds failed to materialise at shops in Britain for "Black Friday" sales...
MDIs urged to embrace best financial reporting practices
Microfinance institutions have been urged to improve on their financial reporting procedures and embrace best practices for more rate of turn over...
LG president jets in from South Korea
The president and CEO of the LG Mobile Communication Company Juno Cho has jetted into Uganda for the first time to assess how the business is doing....
Government has embarked on the process of licensing warehouses across the country to improve quality of grains especially maize in Uganda....
Gov’t told review social protection policy
GOVERNMENT has been asked to review the Social Protection Policy to include vulnerable groups like the youth in agriculture production who lack financial support...
Second annual Social Media summit set for December
All is set for the annual Social Media Summit to be held next month on 3rd December, under the theme ‘Social Means Business’. The summit aims to identify, share, train and advance the use of social media in corporate, businesses, public and non-profit sectors....
Is Uganda ready for the pope's visit?
Can't Say
follow us
subscribe to our news letter