{ "title": "IMF Executive Board Approves US$1 billion ECF Arrangement for Uganda", "publication": "IMF News, June 28, 2021", "sourceUrl": "https://www.imf.org/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda", "canonical": "https://www.imf.org/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda", "overlayPath": "/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda/index.md", "summary": "Approved a 36-month arrangement under the Extended Credit Facility (ECF) for Uganda equivalent to SDR722 million (200 percent of quota or about US$1 billion).", "publishDate": "2021-06-28", "sections": [ { "heading": "Arrangement and Financing Details", "content": "- Approved a 36-month arrangement under the Extended Credit Facility (ECF) for Uganda equivalent to SDR722 million (200 percent of quota or about US$1 billion).\n- Approval enables immediate disbursement of about US$258 million, usable for budget support.\n- This follows Fund emergency support under the Rapid Credit Facility (RCF) in May 2020 of SDR361 million (100 percent of quota or US$491.5 million)." }, { "heading": "Economic impact of COVID-19 and Near-Term Outlook", "content": "- The COVID-19 pandemic reversed decade-long gains in poverty reduction, deteriorated fiscal balances, and put pressure on external buffers.\n- A mild recovery is underway in some sectors.\n- Economic growth in FY 21/22 is expected to reach 4.3 percent before returning to pre-pandemic rates of 6-7 percent in the medium term.\n- The outlook remains highly uncertain, with risks tilted to the downside, including from a resurgence of tighter containment measures linked to higher COVID-19 positivity rates." }, { "heading": "Program Focus and Structural Reforms", "content": "- The three-year financing package will:\n - Support the short-term response to the COVID-19 crisis.\n - Help sustain a post-crisis inclusive recovery.\n- Reforms will focus on:\n - Creating fiscal space for priority social spending.\n - Preserving debt sustainability.\n - Strengthening governance.\n - Enhancing the monetary and financial sector framework.\n- The authorities’ program, enshrined in the third National Development Plan (NDPIII), is built around:\n - Private sector-led inclusive growth.\n - Public sector reforms to strengthen governance and transparency.\n - Multi-year fiscal consolidation while increasing priority and high-quality infrastructure spending.\n- Specific program measures cited:\n - Increase domestic revenue (Domestic Revenue Mobilization Strategy).\n - Foster public sector efficiency and strengthen governance, including preparing the ground for sound management of oil revenues.\n - Better management of public investment, control of domestic arrears and advances in cash management.\n - Strengthen the monetary policy and financial sectors frameworks while fostering development, including through financial inclusion." }, { "heading": "IMF Policy Guidance and Recommendations (from Mr. Tao Zhang)", "content": "- Fiscal policy:\n - Fiscal consolidation in the first year should be appropriately based on both revenue and expenditure measures to stabilize the public debt ratio while increasing social spending, including for vaccines.\n- Debt management:\n - Prudent debt management is important to reduce vulnerabilities, given Uganda’s moderate risk of debt distress.\n - Seek concessional financing and pursue relief under the Debt Service Suspension Initiative.\n - Contingency plans should be in place to help mitigate risks.\n- Monetary and financial sector policy:\n - An accommodative monetary policy stance remains appropriate.\n - The exchange rate should continue to function as a shock absorber.\n - Efforts to increase central bank independence should be sustained.\n - Consider flexible use of banks’ capital buffers to address COVID-19 uncertainties.\n - Minimize financial stability risks through strict adherence to accounting and prudential standards, and modernize the banking resolution and emergency liquidity assistance frameworks.\n- Governance and inclusion:\n - Advance governance reforms to support transparency and private sector development.\n - Further enhance the AML/CFT framework and strengthen the accountability of high-level officials.\n - Promote human capital development and financial inclusion, including through wider credit bureau coverage and collateral requirements.\n - Accelerate digitalization to enhance development and inclusion efforts." }, { "heading": "Selected Key Statistics and Figures", "content": "- SDR722 million (200 percent of quota or about US$1 billion) — ECF arrangement amount.\n- About US$258 million — immediate disbursement enabled by the ECF approval.\n- SDR361 million (100 percent of quota or US$491.5 million) — RCF support in May 2020.\n- 36-month — duration of the ECF arrangement.\n- FY 21/22 growth expected to reach 4.3 percent.\n- Medium-term growth expected to return to 6-7 percent.\n\nIMF Press Release No. 21/197, June 28, 2021.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Uganda and the IMF\n- Press Releases\n- PRESS CENTER\n- Extended Credit Facility\n- Rapid Credit Facility\n- No 20/206\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda" } ], "bullets": [ "[Markdown version](/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda/index.md)", "[Structured JSON version](/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda/index.json)", "[Bundle manifest](/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda/bundle-manifest.json)", "Published: June 28, 2021", "Approved a 36-month arrangement under the Extended Credit Facility (ECF) for Uganda equivalent to SDR722 million (200 percent of quota or about US$1 billion).", "Approval enables immediate disbursement of about US$258 million, usable for budget support.", "This follows Fund emergency support under the Rapid Credit Facility (RCF) in May 2020 of SDR361 million (100 percent of quota or US$491.5 million).", "The COVID-19 pandemic reversed decade-long gains in poverty reduction, deteriorated fiscal balances, and put pressure on external buffers.", "A mild recovery is underway in some sectors.", "Economic growth in FY 21/22 is expected to reach 4.3 percent before returning to pre-pandemic rates of 6-7 percent in the medium term.", "The outlook remains highly uncertain, with risks tilted to the downside, including from a resurgence of tighter containment measures linked to higher COVID-19 positivity rates.", "The three-year financing package will:", "Reforms will focus on:", "The authorities’ program, enshrined in the third National Development Plan (NDPIII), is built around:", "Specific program measures cited:", "Fiscal policy:", "Debt management:", "Monetary and financial sector policy:", "Governance and inclusion:", "SDR722 million (200 percent of quota or about US$1 billion) — ECF arrangement amount.", "About US$258 million — immediate disbursement enabled by the ECF approval.", "SDR361 million (100 percent of quota or US$491.5 million) — RCF support in May 2020.", "36-month — duration of the ECF arrangement.", "FY 21/22 growth expected to reach 4.3 percent.", "Medium-term growth expected to return to 6-7 percent.", "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)", "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)", "[Uganda and the IMF](http://www.imf.org/external/country/UGA/index.htm)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/04/Extended-Credit-Facility)", "[Rapid Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/08/Rapid-Credit-Facility)", "[No 20/206](https://www.imf.org/en/News/Articles/2020/05/06/pr20206-uganda-imf-executive-board-approves-us-million-disbursement-address-the-covid-19-pandemic)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda/index.md", "json": "/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda/index.json", "bundleManifest": "/en/news/articles/2021/06/28/pr21197-uganda-imf-executive-board-approves-ecf-arrangement-for-uganda/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T00:30:35.364Z" }