South Korea Agrees to Lend Uganda Shs1.9 Trillion as Public Debt Nears Shs100 Trillion
Ugandan Minister of Finance, Hon. Matia Kasaija, together with the Korean Minister of Foreign Affairs, Cho Tae-Yul, have signed the Framework Agreement for a US$500 million (Shs1.89 trillion) loan from Korea EXIM Bank at the Korean Ministry of Foreign Affairs in Seoul on the sidelines of the First Korea-Africa Summit on 6th June 2024
On the sidelines of the First Korea-Africa Summit on June 6, 2024, in Seoul, the Korean Ministry of Foreign Affairs and the Ugandan Minister of Finance, Hon. Matia Kasaija and Cho Tae-Yul, signed the Framework Agreement for a US$500 million (Shs1.89 trillion) loan from Korea EXIM Bank.
This is in accordance with the existing agreement between the Government of the Republic of Korea and the Government of the Republic of Uganda concerning loans from the Economic Development Cooperation Fund, signed on April 13, 2012.
Under the terms of the Framework Agreement, the Korean Government shall enable the Ugandan Government to obtain loans from the Economic Development Cooperation Fund (EDCF) up to a maximum commitment amount in Korean won not exceeding the equivalent of five hundred million US dollars (US$ 500,000,000) for the years 2024 through 2028 to finance EDCF loan projects in the Republic of Uganda.
Kasaija was accompanied by Amb. Elly Kamahungye Kafeero, Director for Regional and International Cooperation, and Lenina M. Rukikaire, First Secretary at the Ministry of Foreign Affairs, Uganda.
The Ministry of Finance recently revealed plans to hit the credit market and procure 29 more loans valued at over Shs18.7Trn in the near future to fund various public projects amidst reports that Uganda’s public debt has grown to US$24.60 Billion (Shs93.38Trn) as at end December 2023.
