December 5, 2019 / 8:02 AM / 3 months ago

Uganda to borrow 600 million euros to plug 2019/20 budget deficit

Uganda's President Yoweri Museveni attends a meeting with Russia's President Vladimir Putin on the sidelines of the Russia–Africa Summit in Sochi, Russia October 23, 2019. Sputnik/Mikhail Metzel/Kremlin via

KAMPALA (Reuters) - Uganda plans to borrow 600 million euros ($661 million) from international banks to plug a hole in its 2019/2020 budget after domestic revenue collections fell short by 9%, amid delays in implementation of some planned tax-generating measures.

The move could heighten concerns about the East African country’s growing debt pile which the International Monetary Fund has warned would likely surpass 50% of gross domestic product in 2021/2022. Uganda’s financial year starts in July.

The Finance Ministry said in documents posted on parliament’s website that the government planned to borrow the money from a local unit of South Africa’s Standard Bank and regional Trade Development Bank.

($1 = 0.9073 euros)

Reporting by Elias Biryabarema; Editing by George Obulutsa and Edmund Blair

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