The International Monetary Fund (IMF) executive board has approved two reviews of a financing agreement with Uganda that allow for the immediate release of about $240 million (about Shs870b) to the East African country.
According to the IMF deputy managing director, Bo Li, Ugandan authorities remain committed to their economic programme amidst a challenging environment.
“Most quantitative targets were met in 2022. Six of the twelve structural benchmarks due between March and December 2022 have been completed. A structural benchmark on the asset declaration regime was converted into a prior action for the review and has been met. Sound programme implementation in the period ahead remains important to ensure economic resilience and support the country’s social and developmental objectives,” Li is quoted as saying in a Tuesday statement released by IMF.
In December, Uganda and IMF staff had reached an agreement for the combined second and third reviews of its 36-month Extended Credit Facility, paving the way for the release of the financing, which brings total disbursements under the arrangement launched in June 2021 to $625 million.
“The ECF Arrangement for Uganda for a total of SDR 722 million (200 percent of quota) or about US$1billion was approved by the Executive Board on June 28, 2021, aiming to support the near-term response to the COVID-19 pandemic and boost more inclusive private sector-led long-term growth. Reforms focus on creating fiscal space for priority social spending, preserving debt sustainability, strengthening governance, and enhancing the monetary and financial sector frameworks,” the statement added.
The IMF executive board further granted a waiver of nonobservance of a performance criterion on the stock of net international reserves of the Bank of Uganda.
source: www.monitor.co.ug
