I am aware of the difficulties faced by Uganda which emerged in the second half of the 1980s from a disastrous civil war that left its economy in ruins. Indeed, the economic and infrastructural difficulties being faced by Uganda were recognised in the Irish Aid Strategy Plan issued by the Department of Foreign Affairs in July 1993 and were taken into account in designating Uganda as a priority country for Ireland's Official Development Assistance. However, I do not consider that the severe difficulties of Uganda arise from its relationship with the IMF which has been to the forefront in Uganda's support since 1987, to significant effect.
I am informed that the net flow of financial resources from 1987 to 1992 was an inflow to Uganda of some 105 million US dollars from the IMF. Looking forward, Uganda will repay IMF debts over the years ahead, and will doubtless receive loans also, since its economy is going to need them for some time. At present, the authorities in Uganda and the IMF staff are working together on a further programme which should involve new lending in the next year or so. The IMF is advising Uganda, in the light of its precarious debt, not to engage in borrowings other than on concessionary terms, such as grant supported or interest subsidised loans.
I am informed that the IMF and the Uganda Government have been working closely together since 1987. The Fund has a resident representative in Uganda, and regularly sends missions to consider new programmes, and to monitor developments under old ones. I know that the IMF Board and staff are well aware of the debt problems facing the country, and have engaged in subsidised lending to it (½ per cent interest). The IMF is also acting as a catalyst for non IMF debt restructuring — with some success. The IMF would consider that its adjustment programmes have been of great benefit to Uganda in recent years despite a very difficult external environment.
