Indebtedness, Performance and Sustainability

Borrowing from external sources continues to form an important source of financing for Uganda; particularly as a means for supplementing domestic budget revenue shortfalls as well as financing the country's development programmes and projects. It is thus imperative that the country assesses both the quality and quantity of its future external financing inflows especially by taking into account the policies and procedures of its donors/creditors, financial terms as well as their volumes of assistance. Therefore, designing an effective debt assistance policy/strategy that will ensure external debt sustainability requires a comprehensive analysis of the donor/creditor lending practices in terms of their policies, procedures, volumes of support as well as the Country's own internal policy and institutional capabilities.