EU Cancels Debt, Italy Gives Sh34b

Oct 17, 2002

THE cancellation of 85% of the US$146m (sh262b) debt by the European Union and a 19m Euro (sh34b) grant from Italy, all announced in one day, made yesterday a good day for Uganda.

By Alfred Wasike and John Eremu
THE cancellation of 85% of the US$146m (sh262b) debt by the European Union and a 19m Euro (sh34b) grant from Italy, all announced in one day, made yesterday a good day for Uganda.
The debt relief will free more funds while the grant, targeted at fighting poverty, improving the health and education and agriculture sectors, will boost the economy.
The deal for the sh34b grant was sealed in Kampala yesterday by the visiting Italian vice-minister for foreign affairs, Alfredo Mantica and finance minister Gerald Sendaula.
Earlier in a meeting with presidency minister Prof. Gilbert Bukenya, at which the debt cancellation was announced, Mantica described Uganda as “a role model in the democratisation of Africa and a very key ally” to Italy’s peace initiative in the Horn of Africa and the Great Lakes Region.
“We cancelled Uganda’s debts to enable this progressive country free resources for more development,” he said.
Italy is lobbying for Uganda’s support for a UN Security Council seat in 2006/7. The envoy to Uganda, Teucci Maurizio, said Italy assume the EU presidency next January. Ends

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