The board of the International Monetary Fund has approved the immediate release of about $120 million (Ush440.4 billion) to the country even as it warned of elevated risks including the recent fallout from the enactment of the Anti-Homosexuality Act.
The money has been released under the Extended Credit Facility (ECF) arrangement which provides medium-term financial assistance to low-income countries, like Uganda, with protracted balance of payments problems to implement economic programmes that make significant progress toward a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth.
Quoting an IMF statement announcing the release of the funds, the Finance Ministry Permanent Secretary and Secretary to the Treasury, Mr Ramathan Ggoobi, said Uganda is on a “steady path to full recovery, sustained growth and reform for socio-economic transformation”.
The decision to release the Ush442.4 billion follows the completion of the fourth review which brings the aggregate disbursement under the ECF arrangement to about $750m (Ush2.7 trillion).
The ECF Arrangement for Uganda, which is about $1 billion was approved by the IMF executive board on June 28, 2021.