Finance minister reassures on economy
MEMBERS of Parliament have urged the Government to come up with emergency solutions to counter the current global economic crisis.
By Milton Oupot
and Cyprian Musoke
MEMBERS of Parliament have urged the Government to come up with emergency solutions to counter the current global economic crisis.
The MPs were on Thursday debating a statement on the potential effects of the current crisis on Uganda, presented to the House by the finance, planning and economic development minister, Dr. Ezra Suruma.
The minister said Uganda’s economy may withstand the financial storm in the global economy because ‘Uganda’s financial institutions had not invested in the derivatives that had exposure to these investment bankers’.
“Uganda has a strong regulatory and risk management practices in place that have strengthened the bank balance sheets,†Suruma said.
The real estate sector, the minister added, is unlikely to be negatively affected, saying the companies are young and not yet strongly linked to the international organisations that have failed.
“In the meantime we shall exercise fiscal management and strengthen attempts to improve revenue collection and administration.’
The statement drew criticism from many MPs who questioned the state of preparedness to counter the crisis effects.
Nandala Mafabi (FDC), also shadow finance minister dismissed Suruma’s argument: “There will be a problem because the price of the foreign currency will go up and the cost of production will increase.â€
Franca Akello (FDC) wondered whether Suruma is in control of the economy, citing the fuel price increase since Monday.
and Cyprian Musoke
MEMBERS of Parliament have urged the Government to come up with emergency solutions to counter the current global economic crisis.
The MPs were on Thursday debating a statement on the potential effects of the current crisis on Uganda, presented to the House by the finance, planning and economic development minister, Dr. Ezra Suruma.
The minister said Uganda’s economy may withstand the financial storm in the global economy because ‘Uganda’s financial institutions had not invested in the derivatives that had exposure to these investment bankers’.
“Uganda has a strong regulatory and risk management practices in place that have strengthened the bank balance sheets,†Suruma said.
The real estate sector, the minister added, is unlikely to be negatively affected, saying the companies are young and not yet strongly linked to the international organisations that have failed.
“In the meantime we shall exercise fiscal management and strengthen attempts to improve revenue collection and administration.’
The statement drew criticism from many MPs who questioned the state of preparedness to counter the crisis effects.
Nandala Mafabi (FDC), also shadow finance minister dismissed Suruma’s argument: “There will be a problem because the price of the foreign currency will go up and the cost of production will increase.â€
Franca Akello (FDC) wondered whether Suruma is in control of the economy, citing the fuel price increase since Monday.