IMF executive board approves $240 million disbursement to Uganda

The International Monetary Fund (IMF) said on Tuesday its executive board approved two reviews of a financing agreement with Uganda that allow for the immediate release of about $240 million to the East African country.

In December, Uganda and IMF staff had reached an agreement for the combined second and third reviews of its 36-month Extended Credit Facility, paving the way for the release of the financing, which brings total disbursements under the arrangement launched in June 2021 to $625 million.

"The Ugandan authorities have managed to preserve macroeconomic stability while sustaining the post-COVID-19 recovery despite rising pressure from global shocks and successive domestic shocks, including new public health challenges," the IMF said in a statement.

The Fund reiterated December forecasts that Uganda's economy will grow by 5.3% in the 2022/23 fiscal year starting last July, down from a 6.0% growth forecast issued in March 2022.