Japan Agrees to Cancel Uganda's Million Bilateral Debt
KAMPALA, Uganda (AP) – Japan has agreed to cancel Uganda’s $60 million debt to free up more money for development spending in the poor East African country, officials said Monday.
Japanese Ambassador Nabuaki Ito said the cancellation of the debt would enable Uganda to save $3 million a year in repayments over the next 20 years.
“With the debt relief, you have now new money to utilize for developing economic infrastructure,” Ito told reporters. “This money will be utilized for poverty eradication.”
Uganda had external debts of $4.2 billion, including the bilateral debt owed to Japan, which accumulated since 1989, said Fredrick Matyam, an economist in the Ministry of Finance.
“Uganda was finding a problem with financing its foreign debt at the same time providing social services to its people,” Ugandan Finance Minister Gerald Sendawula said. “This debt relief will improve our capital resource base to fund programs like rural feeder roads, environment, health, education and water services.”
