Business
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
newvision

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. 
 
RELATED STORIES
 
 

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
Scientists told to research on local construction materials
The Research Industrial Institute should come up with new technologies of local materials in the construction industry in the country to reduce reliance on imported ones....
PM Rugunda launches USE automated system
The Uganda Securities Exchange (USE) is now officially trading using an internet-enabled automated trading system....
World markets plunge on fears of weaker global growth
World stock markets plunged further on Tuesday as more gloomy evidence emerged of China''s economic slowdown, triggering heavy sell-offs from Hong Kong to New York and raising fears of weakening global growth....
Consider solar more as alternative power source- Eskom boss
The new head of power generating firm, Eskom has advised Uganda to explore its solar potential seriously as an alternative to the hydropower to increase electricity reach....
Top Ugandan executives to woo investors at UNAA meet in Louisiana
Top executives of major government agencies are heading to the 27th Annual Uganda North American Association (UNAA) Convention in New Orleans, Louisiana to address the Ugandan Diaspora community....
NARO launches modern agricultural practices campaign in schools
The National Agricultural Research Organisation (NARO) has launched its campaigns for sustainable modern agricultural practices in rural schools to ensure quick dissemination of the new farming technologies already invented, for increased quality and quantity of farm produce, job creation, food sec...
Are poor parliamentary debates a result of removal of school debates?
Yes
No
Can't Say
follow us
subscribe to our news letter