Uganda

Banks expect loan default rates to increase on the account of a volatile economic environment characterised by a weak shilling and rising inflationary pressures, according to the Bank Lending Survey Report released last week. According to the 2017/18 fourth quarter report compiled by Bank of Uganda, businesses that hold dollar denominated loans are likely to default because of persistent depreciation of the shilling against the dollar, AllAfrica reported. The shilling has depreciated by more than 7 per cent since the beginning of the year and is projected to weaken further.
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Uganda Gets IMF OK to Raise Debt Limit

The International Monetary Fund has cleared Uganda to increase its debt ceiling on non-concessional borrowing by up to 47%, to allow the East African nation to fund ambitious hydroelectric projects aimed at addressing chronic power shortages, The Wall Street Journal reported. The country's borrowing limit has been increased to $2.2 billion from $1.5 billion, a boost for the country's efforts to access funds to meet its widening budget deficit, Ana Lucia Coronel, the IMF's senior resident representative in Uganda, said Monday.
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The Commercial Court has rejected an application by Aya Bakery to block being put under receivership and paying a sh2b arbitral award to Roko Construction, NewVision.co.ug reported. The head of the Commercial Court, Justice Geoffrey Kiryabwire, ruled that Enoth Mugabi of Mugabi and Company Advocates, who was appointed receiver of the Aya Bakery, should, instead, immediately enter the premises and prepare a statement of affairs of the company and file his findings in court.
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