• EDITORIAL POLICY
  • ABOUT US
PML Daily
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines
No Result
View All Result
PML Daily
No Result
View All Result
suubula suubula suubula
Home NEWS

COVID-19 CRISIS: IMF approves Shs1.8 trillion Covid-19 stimulus package for Uganda

CONRAD AHABWE | PML Daily Senior Correspondent by CONRAD AHABWE | PML Daily Senior Correspondent
May 6, 2020
in NEWS
0 0
4
SHARES
1.9k
VIEWS
FacebookWhatsAppTwitter
Mr. Tao Zhang, the IMF Deputy Managing Director and Acting Chair (PHOTO/File).

The Executive Board of the International Monetary Fund (IMF) on Wednesday, May 6, 2020 approved a disbursement of $491.5 million or 100 percent of quota ( about UGX1.8 trillion) for Uganda under the Rapid Credit Facility (RCF) to help the country deal with the effects of coronavirus.

According to IMF, the money will finance the health, social protection and macroeconomic stabilization measures, meet the urgent balance-of-payments and fiscal needs arising from the COVID-19 outbreak and catalyze additional support from the international community.

Following the Executive Board’s discussion on Uganda, Mr. Tao Zhang, Deputy Managing Director and Acting Chair, issued the following statement:

“The global COVID-19 pandemic is expected to severely hit the Ugandan economy through several channels, with detrimental effects on economic activity and social indicators. The external and fiscal accounts are expected to deteriorate, creating substantial urgent external and fiscal financing needs.

“To limit the pandemic’s human and economic impact, the authorities have promptly adopted bold preventive measures to contain the spread of the virus, and scaled up health spending to strengthen the health system’s capacity. Interventions to support the more vulnerable have also been introduced. In addition, the Bank of Uganda has swiftly introduced policy measures to support liquidity, preserve financial stability and support economic activity. The authorities are encouraged to continue to step up social protection programs to cushion the impact on the vulnerable population and to protect health spending allocations over the medium term.

Ad
“A temporary widening of the fiscal deficit is warranted in the short term to allow for the implementation of the response plan. Despite a temporary worsening of debt indicators and heightened vulnerabilities, public debt is expected to remain sustainable. The authorities remain committed to ensuring debt sustainability, including through their efforts to enhance revenue collection and strengthen public investment management.

“The authorities are committed to managing transparently the resources received and will strengthen transparency and accountability. They plan to report separately on the use of the funds, undertake and publish an independent audit of crisis-mitigation spending and publish large procurement contracts.

“The IMF’s emergency financial support under the Rapid Credit Facility, along with the additional donor financing it is expected to help catalyze, will help address Uganda’s urgent balance of payments and budget support needs.”

The Ugandan economy is being severely hit by the COVID-19 pandemic and, in particular, such key sectors as services (tourism), transport, construction, manufacturing and agriculture. The challenging external environment is curtailing remittances and foreign direct investments. The pandemic has also exacerbated the challenges posed by heavy rains in early 2020 and the ongoing locust invasion.

To contain the impact of the pandemic, the authorities have increased health spending, strengthened social protection to the most vulnerable, and enhanced their support to the private sector. The Bank of Uganda has appropriately reduced interest rates and provided liquidity to safeguard financial stability, while maintaining exchange rate flexibility.

The weakening economic conditions emanating from the Covid-19 pandemic have put significant pressures on revenue collection, expenditure, reserves and the exchange rate, creating urgent large external and fiscal financing needs.

The IMF continues to monitor Uganda’s situation closely and stands ready to provide policy advice and further support as needed. The authorities have also committed to put in place targeted transparency and accountability measures to ensure the appropriate use of emergency financing.

Comments

Tags: coronavirusDeputy Managing Director and Acting ChairIMFMr. Tao Zhangtop

Related Posts

Honourable Robert Kyagulanyi - Bobi Wine with his bullet proof vehicle (PHOTO/Courtesy).
NEWS

URA denies sacking commissioner who cleared Bobi Wine’s car

February 25, 2021
96
Uganda Cranes under 20 (PHOTO/Courtesy).
SPORT

Afcon U20: Uganda play Burkina Faso in quarter-finals, today

February 25, 2021
45
Transport minister Gen Katumba Wamala addressing the press on new driving license issuance on Wednesday (PHOTO/Courtesy).
NEWS

It may create room for forgeries! House questions govt’s ‘preparedness’ on new driver licence issuance

February 25, 2021
69
NWSC has asked the top managers to up their performance (PHOTO/Courtesy).
NEWS

NWSC challenges Managers on Performance and customer care

February 25, 2021
54
NEWS

Her heart beats for street children

February 25, 2021
51
Officials cutting a cake at the luncheon farewell to the outgoing Justice Micheal Elubu (PHOTO/Courtesy).
NEWS

Civil Division bids farewell to Justice Elubu

February 25, 2021
61

Advertisement






 

 

About

The PML Daily, published via www.pmldaily.com is a publication of Post Media Ltd, a professional Digital/New Media company in Uganda.

Follow us

KIU

  • EDITORIAL POLICY
  • ABOUT US

© 2020 PMLDAILY.COM

No Result
View All Result
  • Home
  • NEWS
    • Politics
    • Education
    • Regional
    • Africa
    • World
  • INVESTIGATIONS
    • National Archives
    • Special Reports
  • OpEd
  • BUSINESS
    • Agriculture
    • Tech
    • Finance
  • FEATURES
    • Health
    • Tours & Travel
    • Entertainment
    • Society
  • COLUMNISTS
    • The Suited Penguin
  • SPORT
  • Jobs
  • Magazines

© 2020 PMLDAILY.COM

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In