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Finance Minister: Uganda's Public Debt Sustainable

Minister Kasaija has allocated Shillings 300 billion to pay off domestic arrears. Kasaija says international reserves by end of 2016 stood at three billion dollars, equivalent to 4.2 months of import of goods and services.

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Finance Minister Matia Kasaija says Uganda's debt at 8.7 Billion US dollars is sustainable and way below the East African Community's 50 percent ceiling.

Delivering the 2017/18 budget in Kampala, Kasaija said the debt-to-GDP ratio, as of 31st of December 2016, was 33.5 percent, although in real terms it is 27 percent.

Kasaija said those saying Uganda's debt is unsustainable aren't right because the level is still way below the 50 percent ceiling.

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Recently, both the International Monetary Fund and the Finance State Minister in Charge of Planning, David Bahati said Uganda's debt-to-GDP ratio had increased to 38.6 percent.

Both also said the debt-to-GDP ratio is expected to cap at 43 percent by 2022 on account of massive investments in infrastructure and oil and gas before beginning to fall.

Minister Kasaija has allocated Shillings 300 billion to pay off domestic arrears. Kasaija says international reserves by end of 2016 stood at three billion dollars, equivalent to 4.2 months of import of goods and services.

He said the exchange rate has also been stable as well as inflation.  

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Inflation is at about seven percent, although food inflation is much higher at about 25 percent.

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