The ministry said in a post on the X social media platform that South Korea’s Exim Bank will provide the loan. The ministry did not give details about the type of infrastructure that would be financed with this loan, but Uganda usually borrows for projects related to roads and energy.
The new loan is likely to exacerbate Uganda’s accumulated debt problems, problems that prompted Moody’s last month to downgrade the country’s credit rating, citing “low debt repayment capacity.”
Since December 31, Uganda’s public debt has reached $24.6 billion due to spending on infrastructure projects.
Ugandan Finance Minister Matia Kasaija and South Korean Foreign Minister Cho Tae-yeol signed the agreement on the sidelines of the Korea-Africa Summit in Seoul.
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