World Bank set to offer Uganda Ushs 870b loan

Kampala. Uganda is to receive credit worth about Ushs870b from the World Bank after the financial institution officially lifted suspension of lending to Uganda.

The suspension was done last year due to slow pace in absorption of borrowed funds by the government.

Following the lifting of the suspension, the World Bank says Uganda will receive about Ushs145b is for the civil society to support the prevention of violence against women and girls.

The second credit line is the Intergovernmental fiscal support transfer of about Ushs725b to support education and health projects in districts.

Addressing a news conference yesterday at the Ministry of Finance headquarters about the World Bank’s Open Day due to take place on May 30, at Kololo Independence Grounds, the World Bank manager, Ms Christina Malmberg Calvo, said lending has been reinstated because a lot has been done by the government of Uganda.

“We have seen a lot of progress on how the government is managing the active projects that the World Bank is supporting,” she said.

On September 13, 2016, the World Bank Group took a decision to withhold new lending to Uganda effective August 22, 2016 while reviewing the country’s portfolio in consultation with the Government of Uganda.

One of the issue as to why the World Bank decided to withhold new lending to Uganda was social environment issues, however, Ms Malmberg said: “We has seen significant work done by the government and we hope that new projects will serve the people of Uganda better.

In the past there were delays approving the loan the funds for the two projects will be approved in June this year.”

Specific to new education and health projects, Ms Malaberg explained that it aims at equalising the amount the government is distributing to the districts. (NMG)