Business
Tread carefully on Eurobond — KasekendePublish Date: Jun 18, 2014
Tread carefully on Eurobond — Kasekende
  • mail
  • img
Dr. Louis Kasekende, the Deputy Governor Bank of Uganda
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
Danish agribusiness concept to revive farming in Uganda
There is something intriguing about Denmark. A country with so many world records, one of its outstanding ones include ranking first in government transparency and lack of corruption. There are more, like having the world’s happiest population, the world’s highest minimum wage, lots more....
More investments need to be plunged into the agricultural value chain for Uganda to achieve sustainable economic growth and development, Dr. Kisamba-Mugerwa, the chairperson of the National Planning Authority (NPA) has said....
Ethiopia connects Uganda to South Sudan
Traders and other organizations transacting business in South Sudan beaming with smiles of satisfaction after Ethiopian Airlines being granted permission to operate direct flights between Entebbe to Juba that are set to start next week....
Microsoft profit hurt by Nokia, but revenues jump
Microsoft has said its profits have taken a hit from its newly acquired Nokia phone division but that revenues have got a strong lift from cloud services....
UIA partners with UNRA to develop roads in industrial parks
SINCE opting for the private sector-led growth strategy to spearhead the attainment of Uganda’s growth and development aspirations, the government has, beyond its traditional policy and regulatory role...
Entrepreneurs’ bus comes to Uganda and East Africa
Entrepreneurs’ bus comes to Uganda and East Africa By Billy Rwothungeyo The AMPION Venture Bus this year makes its debut in Uganda and the other East African countries of Kenya, Rwanda and Tanzania....
Should government review powers of kings?
Yes
No
Can't Say
follow us
subscribe to our news letter