Uganda: Central bank official warns on foreign debt
Date
11/19/2015 7:21:11 AM
(MENAFN- The Journal Of Turkish Weekly) Deputy central bank governor Louis Kasekende warned late on Tuesday that Uganda's foreign debt is expected to grow to $33 billion by 2021 up from about $14 billion in June 2014.
The forecast of a $33 billion debt would make Uganda's liabilities as large as its GDP Kasekende said.
Kasekende warned that over the next six fiscal years including the current one Uganda will have to run surpluses of approximately $19 billion per year to fund its current account deficits.
The deputy governor noted that Uganda's ability to earn foreign currency has deteriorated over the last 10 years despite strong growth of tourism food exports and exports of manufactured goods.
The deficit on the current account of the balance has widened from less than $300 million in 2005/06 to $2.3 billion in 2014/15 the last fiscal year Kasekende said.
He called for reforms to change the structure of the Ugandan economy so that it may attain middle ncome status and repeat the rapid growth that the country had seen until last year.
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