Expensive loans, reducing reserves weakening Uganda's growth outlook, says Moody's
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Uganda, Nov. 25 -- A combination of expensive loans, rising debt repayment and decline in foreign reserves, among other risks have influenced Moody's to downgrade Uganda's outlook from stable to negative.
The negative outlook, Moody's said, was due to increasing external debt-service repayments, tightening of global financial conditions and erosion of the foreign exchange reserves, noting that the debt trajectory was vulnerable while currency depreciation continues to put pressure on the economy.
"The structure of Uganda's debt is becoming less favourable. Shorter-term and more expensive domestic borrowing has been key in financing the fiscal deficit in recent years. Domestic debt accounted for 38 percent of public debt as of December 2...
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