Bank of Uganda has reports that the government has failed to pay Shs 11 trillion debt, it borrowed from the central bank.
The bank stated that government obtained an advance of Shs 2.1 trillion in financial year 2020/21, which was subsequently repaid in full.
"Section 4 of the Bank of Uganda Act, 2000 mandates BoU to perform the functions of Banker to Government and Agent of Government in financial matters. As a banker to the government, BoU can grant advances to the government in accordance with the Bank of Uganda Act, 2000 and the Public Finance Management Act, 2015 (as amended)," the bank said in a statement.
"As at 30 June 2021, the outstanding reimbursables to BoU stood at Shs 3.033 trillion. During the financial year 2021/22, BoU made repayments of matured securities to investors worth Shs 11.940 trillion and received reimbursements from the government worth Shs 1.602 trillion. Therefore, government's outstanding reimbursables to BoU as at 30 June 2022 stood at Shs 3.31 trillion, “it said.
In the current financial year (2022/23), the bank said it has made further repayments of securities worth Shs 2.5 trillion and received reimbursements from government worth Shs 1.871 trillion; resulting in outstanding reimbursables of Shs 4.010 trillion as at 15 September 2022.
The management said the detailed plans for the government to fully reimburse BoU, on account of this role, are in place.
