UGANDA: Loan Interest Payments Increase Due To Rising Domestic Debt.

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The amount of interest paid on Uganda’s public debt increased over the six-month period due to a growth in the stock of domestic debt.

The stock of domestic debt climbed by 18.2 percent, according to the study, which analyzes the performance and composition of Uganda’s debt. As a result, the interest rate on the entire public debt jumped from 2.8 percent in June 2021 to 3 percent.

According to a report by the Bank of Uganda in January, the government was spending at least 30% of its tax income on debt service, which was straining domestic revenue.

The research states that over the time period, Treasury Bills made up 15% of all domestic debt, down from 22.5 percent, while Treasury Bonds made up 17% of total debt.

Monitor

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