KAMPALA, 11 May (IRIN): The World Bank multilateral debt-relief initiative has slashed Ugandas external debt by almost 90 percent, which will allow the government to dedicate more resources to humanitarian programmes, according to the countrys finance minister.
– The initiative has reduced our foreign debt of 4,5 billion US dollar to only 500 million dollar (3 milliarder DKR) through the highly indebted poor countries initiative, said Ezra Suruma, Ugandas finance minister, on Thursday, adding: – I am delighted that we shall now put additional resources into education and infrastructure development.
It had cost the East African nation some 200 million dollar (1,2 milliarder DKR) to service this debt annually.
By relaxing Ugandas debt, multilateral creditors – including the World Bank, the International Monetary Fund (IMF) and the African Development Bank (ADB) – had freed the country from the “debt trap”, Suruma said.
The relief is part of an initiative by the G-8 organisation of the worlds wealthiest nations to ease the financial burden faced by the worlds poorest nations. In April, the World Bank announced a move to cancel debts in Benin, Tanzania, Niger, Nicaragua, Mozambique, Mali, Rwanda, Senegal, Burkina Faso, Ethiopia, Ghana, Honduras, Madagascar, Uganda and Zambia.
In May 2005, President Yoweri Museveni ordered his government to reduce its dependence on foreign aid and lashed out at “paternalist” donors, some of whom had cut aid to the country because of concerns about governance and democracy.
Museveni, who has been in power since 1986, demanded that wealthy nations stop pinning assistance on democratic reforms. He warned that Uganda would forsake such aid if donors continued to impose conditions.
Kilde: FN-bureauet IRINnews
