A distinguished African man in traditional attire and hat attending a cultural or political event in Africa.
According to the Deputy Governor Bank of Uganda, Uganda’s public debt has risen to Shs 80 trillion, which is 50% of the Gross Domestic Product (GDP).
The East-African nation’s debt has been under sharp focus recently, with international lenders and rating firms like IMF, World Bank, Moody’s and S&P downgrading its creditworthiness.
The World Bank and IMF have warned countries to ensure that their national debt never exceeds 50% of their GDP. This is because such high debt levels downgrade a country’s creditworthiness, leading to a higher interest rate whenever the government borrows, the effect of which is passed onto the final consumer.
SOURCE: Africa Business Insider