Press Release No. <a name="P16_75"></a>05/241

Mr. Peter Allum, Senior Resident Representative of the International Monetary Fund (IMF) in Uganda, made the following statement earlier today in Kampala:

"An IMF mission visited Uganda during October 13-25, 2005 for discussions with the Ugandan government on the sixth and final review under Uganda's three-year economic program supported by the IMF's Poverty Reduction and Growth Facility (PRGF). The SDR 13.5 million (US$19.5 million) PRGF was approved by the Executive Board of the IMF on September 13, 2002. Discussions for the review also took place with civil society, the business community, and Uganda's development partners.

"The mission, headed by Mr. John Green, held productive discussions with the Ugandan authorities, including President Museveni, on a number of key policy issues relating to the sixth PRGF review. These included: implementation of the 2005/06 budget; plans for addressing domestic expenditure arrears; progress in strengthening the Uganda Revenue Authority; financial sector policies; and a range of structural reforms critical for improved growth performance, further poverty reduction, and achievement of the 2015 Millennium Development Goals (MDGs).

"The mission also discussed with the government prospective relations with the IMF, following the expiry of the current PRGF program in December 2005.

"The IMF team welcomed the government's strong track record under the three-year PRGF program, including its demonstrated commitment to macroeconomic stability, which has been key to fostering high and sustained rates of growth. The IMF team noted that Uganda's balance of payments position is strong, and agreed with the government that Uganda is well-placed to graduate from IMF financing. The government has indicated that it will maintain the momentum of macroeconomic policy reforms with a program under the IMF's Policy Support Instrument (PSI) framework. This framework is designed for low-income countries that may not need, or want, IMF financial assistance, but still seek IMF advice, monitoring, and endorsement of their policies.

"The mission has returned to headquarters in Washington D.C., where it will continue to work closely with the authorities with a view toward completing the sixth PRGF review. The IMF's Executive Board is expected to discuss the staff's report on this mission in late 2005. With the consent of the government, the report will be published on the IMF's website."