IMF Approves $1 Billion, 3-year Loan For Uganda
The IMF board on Monday approved a $1 billion, three-year loan for Uganda to help the African nation recover from the economic crisis caused by the Covid-19 pandemic.
The new aid provides $258 million immediately to help the government cover spending, and comes on top of an emergency loan of nearly $500 million last year, the International Monetary Fund said in a statement.
The pandemic upended years of progress in reducing poverty, but the Washington-based crisis lender noted a modest recovery underway even amid continuing uncertainty and risks to the outlook.
![The International Monetary Fund will provide new financing for Uganda to help with poverty reduction](https://d.ibtimes.com/en/full/3237811/international-monetary-fund-will-provide-new-financing-uganda-help-poverty-reduction.jpg?w=736&f=47d1a69055ee676e808047878c4dfaf3)
"Uganda's economy has been severely impacted by the COVID-19 global pandemic, which reversed decade-long gains in poverty alleviation and opened up fiscal and external financing gaps," IMF Deputy Managing Director Tao Zhang said in a statement.
The government will work on debt reduction and investments in infrastructure "while increasing social spending, including for vaccines" and reducing poverty, he said.
© Copyright AFP 2024. All rights reserved.